CNP - CenterPoint Energy: A Modest Arbitrage Opportunity Into Conversion
- CenterPoint Energy's mandatorily convertible preferred shares trade at a minor discount to the common shares based on current conversion rates.
- In addition to the remaining dividend at an 8% annualized yield, the potential arbitrage opportunity approaches a 10% annualized return.
- Investors interested in the common stock may find it worthwhile to select the preferred and establish a common stock position through conversion.
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CenterPoint Energy: A Modest Arbitrage Opportunity Into Conversion