2024-03-07 08:25:27 ET
Summary
- We expect a significant upside for the TC Energy preferred shares, Series 7, over the next six months.
- The opportunity that comes from the reset of the fixed dividend yield happens only once every five years, and reset at much higher rates is even rarer.
- An increase in the fixed rate could result in the price reaching or even exceeding the issue price, providing for north of 39% upside in the long term.
- A potential decrease in interest rates by the Government of Canada later this year would also represent a tailwind for the preferred shares.
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TC Energy: Series 7 Preferred Shares Ready For Takeoff