Telus preferred senior notes

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Good afternoon:

I just saw that Telus just did an offering of Senior notes.  Would it be better to buy them or the stock in your opinion?

Thanks so much!!!

Daisy

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Asked on May 21, 2020 3:06 pm
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Private answer

Hi Daisy,

The primary difference is that with Senior notes you are holding debt, as opposed to equity in the company. The notes are attractive in that they pay reliable income, and holders are the first to get paid in the event the company goes bankrupt. This is unlikely to happen in Telus' case.

A Senior Note is effectively a corporate bond - lower risk, consistent income. If however, you are looking for income, capital appreciation and to actually own equity in the company, than Telus' stock is the better choice.

Mat

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Posted by Mathieu Litalien
Answered on May 22, 2020 6:04 am
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