Capital Power Preference Shares Yield Above 7% Amid Price Drop

Capital Power shares yield above 7% following Monday's trade, sparking investor interest. With a 1% drop in preferred shares on the day, various factors could influence future stock price movements.

Date: 30-12-2024

AI Rating: 6

Dividend Yield
Capital Power Corp's Cumulative Rate Reset Preference Shares indicated a strong yield of over 7%, based on its quarterly dividend of $1.6578, making them an attractive option for income-seeking investors. The yield reflects the annualized figures and could result in increased buying interest from potential investors looking for stable returns.

Current Share Price
The shares were observed trading as low as $23.55, representing a 4.20% discount to their liquidation preference amount. This discount may attract value investors who see potential for recovery in share price over time.

Price Movement
On the other hand, the preferred shares experienced a slight decline of about 1%, which could raise concerns among investors about the stability of these shares. Conversely, the common shares exhibited a minimal increase of 0.1%, indicating slight positive sentiment among investors in the common equity.

Overall, the factors surrounding the yield and current trading position suggest that while there is attractive income potential, the slight decline in the preferred shares could lead to cautious sentiment among investors going forward.

Stocks: CPX