Back in Feb 2008, I wrote an opinion that preferred shares had been mauled and were at or quickly approaching a price level where they constituted extreme value along with profit potential. Most are issued at $25.00 per share, split corps and a few others issued preferreds at lesser price but their drawdown was percentagly just as profound, and many are slated to be redeemed at their issue price, all will strive to reach it-some already have.
Generally most preferred have moved substantially up from their lows, 50 to 200%+, and all the while never missing a dividend. Many of these dividends are producing returns of 9 to 14% depending at what the invested price was for the underlying.
Those who took advantage of this overlooked and under advertised bonanza, the media and gurus where strangely MIA, are extremely happy. Those who did not still have a chance to get continuous dull income and capital gains-the play is not over yet. There is also opportunity to be had in debuntures and some preference shares but buy them in an RSP or some other vehicle where the intrest they earn does not get taxed as income. That way you get a bit of time to savour your acuman before the government starts robbing you to support their egos.