Attractive Yields

CdnPrefs have attractive yields relative to other fixed income instruments

Capital Preservation

Face value is preserved and must be paid when:

Issue is called by the Issuer

Issue is retracted by the holder

Cdnprefs tend to be issued by trustworthy investment grade corporations

Cdnprefs tend to be less volatile and trade around par

Source: Bank of Canada,

Updated daily

Portfolio Diversification Benefits

Preferred shares may improve portfolio diversification due to low observable correlations to traditional asset classes

Tax Advantages

Cdnprefs dividends are taxed more favourably than interest income generated by many fixed income instruments

The after-tax yield is much higher for individuals than similar fixed income securities