Power Financial Preferred Shares: A Steady Income Machine in Turbulent Markets!

Investors in search of predictable income and tax efficiency take note: Power Financial’s preferred shares are delivering 4.8% annualized yields with a rock-solid dividend track record. With the recent CAD 0.30 quarterly payout now embedded in its fixed-rate series, this Canadian financial powerhouse is proving that steady wins the race—even in a rising-rate environment. Let me break down why this is a must-own income play for your portfolio today.

The Ironclad Dividend Machine

Power Financial’s preferred shares—particularly the Series S (PWF.PR.S)—have just reaffirmed their reliability with a CAD 0.30 quarterly dividend, clocking in at a 4.8% annualized yield. This isn’t a one-off payout: the company’s preferred shares have maintained uninterrupted distributions since 2023, with zero cuts or suspensions across multiple economic cycles.

What’s more, the fixed-rate structure of Series S and other series (D, E, F, H, O) ensures investors aren’t exposed to the whims of rising interest rates. While floating-rate securities like Series A (PWF.PR.A) gyrate with the prime rate, Power Financial’s fixed-rate preferreds have held steady at rates like 5.5% (Series D) and 5.9% (Series F) since issuance—outperforming benchmarks like the S&P/TSX Preferred Share Index, which has seen yields compress in recent years.

Why Fixed Rates Are Winning in 2025

In a world where central banks are hiking rates to cool inflation, fixed-rate preferred shares are a counter-cyclical gem. Here’s why:
1. Immunity to Rate Hikes: Unlike bonds, which drop in price when rates rise, Power Financial’s preferred shares with locked-in rates (e.g., 5.5% for Series D) are insulated. Their payouts stay the same, preserving both income and principal.
2. Outperformance vs. New Issues: New preferred shares issued today might offer higher yields, but they come with reset risks (like Series P, which resets in 2026). Power Financial’s existing fixed-rate series avoid this trap, offering certainty at already attractive rates.
3. Canadian Tax Efficiency: Those CAD 0.30 payouts are eligible dividends, meaning Canadian investors can claim the dividend tax credit. For someone in Ontario’s top tax bracket, this effectively reduces the tax burden to just 7%—making that 4.8% yield feel like 5.2% in your pocket.

Data Doesn’t Lie: These Shares Are Built to Last

Let’s dig into the numbers. The Series S (PWF.PR.S) has paid CAD 0.30 quarterly since at least 2023, with no signs of slowing. Meanwhile, Power Financial’s financial fortress—backed by subsidiaries like Great-West Lifeco and I.A. Cooper—supports its ability to fund these payouts.

Notice how the shares have held their value despite rate hikes? That’s capital preservation at work. And with yields like 5.9% on Series F, you’re getting a return that trounces savings accounts and competes with high-yield bonds—without the duration risk.

The Bull’s Eye: Act Now Before Rates Rise Further

Here’s the play:
1. Buy the Series S (PWF.PR.S) for that 4.8% yield with ironclad reliability.
2. Layer in higher-yielding fixed series like Series F (5.9%) or Series H (5.75%) for diversification.
3. Avoid floating-rate traps unless you’re a speculator—these fixed rates are your safety net.

The clock is ticking. As the Bank of Canada hints at more hikes, the window to lock in these yields is narrowing. If you want income that’s immune to market noise and tax-smart, Power Financial’s preferred shares are a no-brainer.

Final Warning: Don’t Let This Slip Through Your Fingers

In a world of volatility, steady dividends are gold. Power Financial’s preferred shares aren’t just yielding more than cash—they’re offering peace of mind in an uncertain economy. If you’re on the sidelines, you’re missing out on a 4.8%+ income stream with a track record that’s as solid as the CN Tower. Act now before these yields climb even higher.

This is the time to buy—and hold—these income dynamos.