Today is March 16, 2020 and it feels like the end of the world as we know it. Markets continue dropping with uncertainty surrounding the spread of COVID-19 and economic policies to help curtail a potential looming recession. The market correction we are witnessing is happening at faster paces than we have seen before. This isn’t a time to let panic set in.
I’ve been a holder of Flyht Aerospace Solutions for some time but until recent I haven’t been bullish on the stock. After coming off highs of $2.70 a few years ago the stock dropped below $1.00 and since recovered to $1.72. The company reported earnings Wednesday which saw revenue increase across segments and net income of $1,037,326.
Lets take a closer look at the company.
If you are afraid of a market correction and looking for safer alternatives to park some cash, consider preferred shares. Preferred shares trade on the market indexes like stocks but their main attraction is bond like payouts in the form of dividends. Depending on the preferred share chosen, the dividend can be paid out quarterly or monthly, and will feature either a fixed rate or floating rate dividend.
Let’s take a look at BCE preferred Ab shares, currently trading on the TSX for $15.03. This preferred share features a monthly floating rate dividend of $0.08229/share. This equates into a yield of 6.57% on an annualized basis. Given the fact bond yields have been decreasing due to low interest environments these preferred shares can provide a good alternative to yield investments – while providing safety and capital gains.
Before you invest in preferred shares, here are some things you should know:
Shares of Linamar touched below $38.00 in trading Friday after reporting earnings a day earlier. During the quarter the company posted EPS of $2.40, down from $2.93 a year ago. Sales came in lower at 2.086 billion compared to 2.157 billion. Linamar operates in a cyclical industry where manufacturing slow down can play a significant role in sales and earnings. Let’s not all hit the sell button just yet.