Last updated: November 10, 2023
The following is a list of preferred shares that we can purchase in the PSE stock market. I update the list when new preferred shares are coming up or existing preferred shares are redeemed.
| Stock | IPO Price/sh | Gross Dividend Yield (pa) | Issue Date | Redemption Date | Payout Frequency | Participating | Convertible | Cumulative |
|---|---|---|---|---|---|---|---|---|
| ALCPC | 100 PHP | 6.93% | 2019 | 2024 | Quarterly | No | No | Yes |
| PRF3A | 1000 PHP | 6.87% | 2019 | 2024.5 | Quarterly | No | No | Yes |
| PRF3B | 1000 PHP | 7.14% | 2019 | 2026 | Quarterly | No | No | Yes |
| 8990B | 100 PHP | 5.50% | 2021 | 2024 | Quarterly | No | No | Yes |
| MWP2B | 100 PHP | 5.75% | 2020 | 2025 | Quarterly | No | No | Yes |
| MWP4 | 100 PHP | 5.30% | 2021 | 2024.5 | Quarterly | No | No | Yes |
| JFCPA | 1000 PHP | 3.28% | 2021 | 2024 | Quarterly | No | No | Yes |
| JFCPB | 1000 PHP | 4.24% | 2021 | 2026 | Quarterly | No | No | Yes |
| BRNP | 100 PHP | 7.00% | 2021 | 2026 | Quarterly | No | No | Yes |
| EEIPA | 100 PHP | 5.76% | 2021 | 2024.5 | Quarterly | No | No | Yes |
| EEIPB | 100 PHP | 6.94% | 2021 | 2026.5 | Quarterly | No | No | Yes |
| TCB2C | 50 PHP | 6.59% | 2021 | 2024 | Quarterly | No | No | Yes |
| TCB2D | 50 PHP | 7.75% | 2021 | 2026 | Quarterly | No | No | Yes |
| ALCPD | 500 PHP | 6.00% | 2021 | 2026 | Quarterly | No | No | Yes |
| MWP5 | 100 PHP | 7.90% | 2023 | 2026 | Quarterly | No | No | Yes |
| ACPAR | 2500 PHP | 6.36% | 2023 | 2028 | Quarterly | No | No | Yes |
| PRF4A | 1000 PHP | 6.71% | 2023 | 2025.5 | Quarterly | No | No | Yes |
| PRF4B | 1000 PHP | 6.79% | 2023 | 2026 | Quarterly | No | No | Yes |
| PRF4C | 1000 PHP | 7.09% | 2023 | 2028 | Quarterly | No | No | Yes |
| ACENA | 1000 PHP | 7.13% | 2023 | 2028 | Quarterly | No | No | Yes |
| ACENB | 1000 PHP | 8.00% | 2023 | None | Quarterly | No | No | Yes |
| SMC2L | 75 PHP | 7.91% | 2023 | 2026 | Quarterly | No | No | Yes |
| SMC2N | 75 PHP | 8.35% | 2023 | 2028 | Quarterly | No | No | Yes |
| SMC2O | 75 PHP | 8.59% | 2023 | 2030 | Quarterly | No | No | Yes |
Preferred shares are dividend stocks in which the investor's purpose is to earn mainly through dividend payouts. As compared to common dividend-paying stocks, preferred shares by nature are not volatile thus our capital rarely appreciates or depreciates. We can think of this investment similar to bonds where we lend money a corporation in which they will pay us back with an interest but in the form of dividends.
I have listed the IPO price and redemption date for us to decide whether it is the right time to buy. After IPO, the price in the stock market is usually higher and in effect the dividend yield is lower. Sometimes, it is not a good idea to buy preferred shares when they are near redemption date since a company will redeem the shares at IPO price and not the price you bought them in the stock market. That said, it could also be an opportunity to buy preferred shares that is below their IPO price and profit from the redemption with the assumption that the company have the means to redeem it. The value of a preferred shares usually drops when there are indications that the company cannot redeem the shares or if the yield is lower than the inflation rate. Not all preferred shares are created equal so here are some facts that we need to take note of before buying preferred shares:
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Preferred shareholders have piece of the business but they do not have voting rights. In exchange, they are prioritized for dividends instead.
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Preferred shares can be cumulative or non-cumulative. A company is not mandated by law to pay dividends on time. The payout can be deferred if the company is not capable of paying. A cumulative preferred share will payout the missed dividends on the next payout schedule or until they are capable of paying. Non-cumulative preferred share is the opposite, a missed dividend payout is a missed payout. Most preferred shares are cumulative.
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Preferred shares are perpetual or have a redemption date. A company buys back their shares at IPO price upon redemption date. If there is no redemption date then it is perpetual until such time that the company decides to buy them back. When a company misses the redemption date, a step-up rate usually happens in which the dividend yield increases. Some preferred shares have call-options in which the company can offer the shareholders the option to sell their shares. The company decides the price but shareholders are not obliged to sell.
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Preferred shares can be participating or non-participating. A company usually declares dividends separately for preferred shareholders and common shareholders. A participating preferred shareholder will receive both dividends from the declaration. On the other hand, a non-participating preferred shareholder will only receive dividends that are meant for them. Most of the time preferred shares are non-participating.
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Preferred shares can be convertible or non-convertible. Shareholders have the option to convert their preferred shares to the equivalent common shares of a company. Most of the time preferred shares are non-convertible.
- When it comes to the company going default, bondholders are paid first before preferred shareholders. However most of the time, little or none is left to payout to preferred shareholders.
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