E-l Financial's Preference Shares, Series 2 Crosses Above 6.5% Yield Territory
In trading on Tuesday, shares of E-l Financial's 4.75% Non-Cumulative Redeemable First Preference Shares, Series 2 (TSX: ELF-PRG.TO) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.1875), with shares changing hands as low as $18.20 on the day. As of last close, ELF.PRG was trading at a 26.60% discount to its liquidation preference amount. It should be noted that the preferred shares are convertible. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.