Great-West Lifeco's Preferred Shares, Series H, Cross 5.5% Yield Mark

Great-West Lifeco Inc.'s Non-Cumulative First Preferred Shares, Series H (TSX: GWO-PRH.TO) are trading up approximately 0.5% in Friday's session, slightly outperforming the company's common shares (TSX: GWO.TO), which gained about 0.1%. These preferred shares are highlighted for their significant dividend yield, reportedly exceeding 8% on a monthly payment basis, making them notable for income-focused investors.

Analysis

In a recent trading session, Great-West Lifeco's Non-Cumulative First Preferred Shares, Series H (GWO.PRH) demonstrated modest outperformance relative to the company's common stock (GWO), gaining approximately 0.5% compared to a 0.1% rise in the common shares. The primary driver of interest in these preferred shares, as indicated by the source material, is their significant dividend yield, reportedly exceeding 8% with monthly distributions. This positions GWO.PRH as a security tailored for income-oriented portfolios, where consistent cash flow is prioritized. The price action, though minor, highlights the distinct behavior of different instruments within a single company's capital structure, with the preferred shares reacting to their yield appeal while the common shares reflect broader equity market sentiment.

Key Decisions for Investors

• Income-focused investors should evaluate the Series H preferred shares (GWO.PRH) as a potential source of high-yield monthly income, given the reported dividend of over 8%.
• Investors should distinguish between the risk-return profiles of the company's securities: the preferred shares for yield and the common stock (GWO) for exposure to the company's growth and capital appreciation potential.