PMT Forum
How do you want to make money today?

Question on Preferred Shares

archmage · 11 · 2946

archmage

  • Newbie
  • *
    • Posts: 9
    • Likes Received: +0/-0
on: Feb 04, 2014, 07:04 AM
1) Can I still buy a Pref. Shared even after I have missed their First/Second/etc Quarter?
2) Assuming there are buyers or Im selling to sell at a lower price than the market, can simply sell it like an common stock?
3) How long is the term of holding this shares?
4) Can I still download a copy of Certificate of Designation even after the Pref. Shared has been issued?
5) What's the difference between Pref. Shared A, B, C etc? Is it just a matter of on what series it was issued?

6) ACPB for example have a rate of 6.5625/share Cash Div. every quarter. If I have 1000 Shares, that means Php6,562/month or Php26,248 in one year?

7) I saw ACPA's Div rate is 8.88% per annum. But there's Ex-Date everu quarter. Im confused with the "annum" then quarter ex-date. Can you kindly explain this?


I have observed that Preferred Shares would just go sideways. I know it doesn't guarantee capital preservation but it seem to offer a higher chance that your capital would be preserved. I'm planning to buy some Pref Shared of a blue chip company. I think it's better and would earn much higher than leaving it in the bank.

Kindly shares your thoughts. thank you!


wilch23

  • VIP 6500
  • *****
    • Posts: 6,544
    • Likes Received: +8/-0
Reply #1 on: Feb 04, 2014, 09:35 AM
Yes, preferred shares will usually earn more than your Time Deposit accounts nowadays.

First, the tax is only 10% vs 20% for the interest income of bank deposits.
Second, the rate is higher, downside being it is not secured - no PDIC protection (but PDIC only covers 500,000 anyways)

The main downside is that the payout is not guaranteed. If the company lost money, it may postpone dividends payout. Though very rare, it may even cancel dividends payout in certain situations. It depends on the terms and conditions of the preferred shares you buy. Usually they make up at the next scheduled payout. IF the company goes BANKRUPT then ...

So staying with a blue chip is a good strategy.

Ex date only means that you need to own the shares before the ex(cluded) date to be qualified for dividends. So make sure the shares are RECORDED in your name before ex-date to get the dividend payout.


wilch23

  • VIP 6500
  • *****
    • Posts: 6,544
    • Likes Received: +8/-0
Reply #2 on: Feb 04, 2014, 09:44 AM
1) Can I still buy a Pref. Shared even after I have missed their First/Second/etc Quarter?

I assume you're talking about preferred shares listed in the PSE, so yes you can buy as long as it has not yet matured.

2) Assuming there are buyers or Im selling to sell at a lower price than the market, can simply sell it like an common stock?

Yup, buy and sell at the PSE. you only need a stock brokerage account.

3) How long is the term of holding this shares?

Depends on the preferred shares terms and conditions. Just look it up at the issuing company's investors page.

4) Can I still download a copy of Certificate of Designation even after the Pref. Shared has been issued?

Probably.

5) What's the difference between Pref. Shared A, B, C etc? Is it just a matter of on what series it was issued?

Issued at different times, may have different terms and conditions, including rate of return and duration.

6) ACPB for example have a rate of 6.5625/share Cash Div. every quarter. If I have 1000 Shares, that means Php6,562/month or Php26,248 in one year?

Less 10% tax

7) I saw ACPA's Div rate is 8.88% per annum. But there's Ex-Date everu quarter. Im confused with the "annum" then quarter ex-date. Can you kindly explain this?


I have observed that Preferred Shares would just go sideways. I know it doesn't guarantee capital preservation but it seem to offer a higher chance that your capital would be preserved. I'm planning to buy some Pref Shared of a blue chip company. I think it's better and would earn much higher than leaving it in the bank.

Kindly shares your thoughts. thank you!


archmage

  • Newbie
  • *
    • Posts: 9
    • Likes Received: +0/-0
Reply #3 on: Feb 04, 2014, 11:25 AM
1) Yes im talking about Preferred Stocks listed in PSE.

2) I have been trading Common Stocks for almost 2 years now. Still a newbie though. It's just now that I started thinking about Pref. Shares.

6) What less 10% tax?? is the the normal TAX or the VAT from trading fee when buying and selling which is actually 12%

7) I understand the Ex, Record and Date Payable. What Im confused with is, why say 8.88% per annum when they are giving it every quarter? Why not say 8.88% per Quarter?

thank you for the reply


GoodSteward

  • VIP 3500
  • *****
    • Posts: 3,991
    • Likes Received: +4/-0
Reply #4 on: Feb 04, 2014, 11:43 AM
7. Technically its 2.22% per quarter. And btw ACPA is "bought back" buy ayala already... they now have ACPB instead, with a much lower rate.

6. Less 10% is less 10% of income generated. So to make it less confusing with the ACPA example, 8.88% is gross, less 10% and that is the net of what you will get.
« Last Edit: Feb 04, 2014, 11:49 AM by GoodSteward »


archmage

  • Newbie
  • *
    • Posts: 9
    • Likes Received: +0/-0
Reply #5 on: Feb 04, 2014, 12:29 PM
^ thanks for that.

Im currently trying to look for a document(Cert. of Designation or Prospectus) about the Pref Shares available in different investor relations site of the blue chips... but they seem to not have it. Is it something I need to call the Investor Relations number or email them for a request?


archmage

  • Newbie
  • *
    • Posts: 9
    • Likes Received: +0/-0
Reply #6 on: Feb 04, 2014, 01:57 PM
how/where will I know if the Pref. Shares are Cumulative and their Callability?


yllor

  • PMT Idol 1000
  • ****
    • Posts: 1,059
    • Likes Received: +0/-0
Reply #7 on: Feb 04, 2014, 02:12 PM
how/where will I know if the Pref. Shares are Cumulative and their Callability?

It is noted in the 'Prospectus' of that preferred shares issued.

Try the PSE website disclosure tab or type the ticker symbol in search to find out the initial information. Initial information are in the form of memorandum from PSE. Prospectus are mostly filed in respective company website investor's relation.

Most preferred shares are callable because company wanted to reduce their risk in paying dividend rate. Example, AC redeemed one of the preferred shares with higher interest/dividend rate and later issued another preferred shares with lower interest/dividend rate.


archmage

  • Newbie
  • *
    • Posts: 9
    • Likes Received: +0/-0
Reply #8 on: Feb 04, 2014, 02:24 PM
Yep. Was looking for a Cert of Designation or Propectus(i've read one from ALFM before). The ones in PSE only have the announcement of Pref Share stock price and their dates. Nothing about fine print. :(


wilch23

  • VIP 6500
  • *****
    • Posts: 6,544
    • Likes Received: +8/-0
Reply #9 on: Feb 05, 2014, 11:19 AM
Maybe in the company web site archives?


nanay

  • Junior Member
  • **
    • Posts: 48
    • Likes Received: +0/-0
Reply #10 on: Dec 18, 2014, 08:58 PM
How much will be the price per share when Petron redeems its preferred stocks this 2015? 


 


PMT Shoutbox

Refresh History
  • Post only questions or comments here. Advertisements NOT ALLOWED.
  • oragon: :applause:
    May 20, 2019, 03:53 PM
  • FutureGizmo: Thank you for reporting those spam posts, oragon! Spam posts now deleted.
    May 20, 2019, 01:59 PM
  • oragon: Admin kindly monitor some peps! posting and sharing inappropriate nude photos and website links
    May 20, 2019, 01:52 PM
  • @culinary10: Hello I am new here! Regarding sa bdo life insurance for 8 years, pwede pa kaya ma refund yung binayad ko na 50k last year? Gusto ko sana icancel kasi lack of financial na, last may 15 2018 po un nag start ako ng life insurance, pinili ko annually kaso etong may 15 2019 wala nako ma ipay so gusto ko sana icash out, may alam ba kayo kung pano marerefund?
    May 17, 2019, 07:56 PM
  • FutureGizmo: Hi Sonny, the posting issue is now resolved. Thanks for informing us! We're currently testing a new, mobile-ready theme so let us us know kung may problema pa sa Forum. :)
    Apr 04, 2019, 10:40 AM
  • sonny.wapak: Nakaka receive din ba kayo nito pag gawa ng new post? "Please try again. If you come back to this error screen, report the error to an administrator."
    Apr 03, 2019, 10:56 PM
  • leonine_zafiro: what product nun?
    Apr 01, 2019, 10:25 PM
  • dhondiex27: hi
    Mar 30, 2019, 10:55 PM
  • lusart: jayrob i agree 200%. hulog ng langit organico. legit na legit
    Mar 29, 2019, 09:08 AM
  • palemelch: Hi
    Mar 28, 2019, 04:08 PM
  • O.C.W._AK: Magandang Araw sa Lahat! Blessings! (",)
    Mar 28, 2019, 08:42 AM
  • thor15: hello everyone, newbie here
    Mar 25, 2019, 01:47 AM
  • captjaylo: present newbie here
    Mar 22, 2019, 10:06 AM
  • balboagilbert26: hello Guys .. Newbie here
    Mar 21, 2019, 10:55 PM
  • businesswoman2019: @jefsanity nag inquire na po ako pero di sila nagdidisclose. Yung branch po kasi na target ko, currently building pa.
    Mar 21, 2019, 04:27 PM
  • jefsanity: @businesswoman2019, much better inquire ka na lang sa admin nila.
    Mar 21, 2019, 01:51 PM
  • businesswoman2019: Hello! Any idea how much ang stall sa waltermart. 2m x 2m
    Mar 21, 2019, 08:28 AM
  • John Neil: Looking for an accredited iron foundry
    Mar 17, 2019, 03:19 PM
  • jayrob: Mark_Lee ung organico legit po yan..  Member din AQ..
    Mar 17, 2019, 12:57 AM
  • perlymelad: Hello po! Need advice, why my new MLM leaders failing?
    Mar 14, 2019, 08:51 PM
  • perlymelad: Present
    Mar 12, 2019, 07:53 PM
  • kennethmauricio: Hi saan po dito pwede mag post ng for sale properties?
    Mar 11, 2019, 07:58 PM
  • jefsanity: @mark_lee isipin mo anu passion mo at skills mo...
    Mar 11, 2019, 06:52 PM
  • sniperaj09: BAGO LANG
    Mar 10, 2019, 11:16 AM
  • mark_Lee: magandang investnent ngayon sa 30k suggest naman keo mga boss
    Mar 10, 2019, 03:07 AM
  • perlymelad: E-BOOK PO SIR @JEFSANITY
    Mar 09, 2019, 05:40 PM
  • perlymelad: @jefsanity Good Morning Po
    Mar 09, 2019, 05:39 PM
  • perlymelad: Good Day everyone
    Mar 04, 2019, 06:24 PM
  • jefsanity: anu ang small business na yan?
    Feb 28, 2019, 07:40 PM
  • perlymelad: Good Day Everyone
    Feb 28, 2019, 03:31 PM
  • perlymelad: Hello everyone, CAN ANYONE HELP ME SUGGEST ANY SIDE TOPIC  / PROBLEM OF  STARTING SMALL BUSINESS?
    Feb 28, 2019, 06:58 AM
  • perlymelad: Present, 1st time po
    Feb 25, 2019, 06:17 PM
  • jd2281: newbie po
    Feb 25, 2019, 12:26 PM
  • ejllantino: present... 1st time
    Feb 24, 2019, 07:14 PM
  • rheiel: present. first time
    Feb 24, 2019, 11:04 AM
  • MELVIE: thanks po
    Feb 24, 2019, 12:50 AM
  • steph123: hello po, ask lang po, ilang months po ba ang hihintayin after mo ma process ang mga documents para maitama ang mali sa NSO?
    Feb 11, 2019, 03:13 PM
  • Deborah: newbie here.thanks
    Feb 08, 2019, 02:17 PM
  • marj0503: hello im newbie here
    Jan 31, 2019, 10:53 AM
  • yan24: any one here planning to start a tesda skill training center
    Jan 26, 2019, 12:07 PM
  • manzjon: Forex trading forum
    Jan 25, 2019, 02:16 PM
  • Lizette Ramos: Pwede po bang patulong... Maganda po ba ang gasul retailing business?
    Jan 24, 2019, 09:14 PM
  • Imnobody: Hi sino naghahanap ng casino financer dito?
    Jan 16, 2019, 09:59 PM
  • Odlanyer22: Good day!
    Jan 16, 2019, 09:55 PM
  • maryen: at kung sakaling may somobra sa food na nailuto.. dapat po bang bayaran ng client un .. or ipapa take mo na sakanila?...
    Jan 16, 2019, 03:52 PM
  • maryen: HI! GOOD DAY! newbiz lang po... question lang po regarding sa catering.. if may 50pax po ako dapat lang po ba na sakto ang serving ng food?
    Jan 16, 2019, 03:50 PM
  • mark_Lee: cno na nag organico dito scam po ba yun or legit
    Jan 09, 2019, 03:04 AM
  • kuray08: Have a Prosperous New Year to all..
    Jan 06, 2019, 09:27 PM
  • ethan: Sino po may auto supply business dito? How profitable po ba ito in terms of monthly income? Lalo na kung meron na one or two na competition.
    Jan 04, 2019, 11:34 AM
  • Niel Jhacoubs: HAPPY NEW YEAR!
    Jan 02, 2019, 04:37 PM