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ECN Capital Corp ECNCF


Primary Symbol: T.ECN Alternate Symbol(s):  T.ECN.DB | T.ECN.DB.A | T.ECN.DB.B | T.ECN.P.C | ECNNF

ECN Capital Corp. is a Canada-based provider of business services to North American banks, credit unions, life insurance companies, pension funds and institutional investors (collectively, its Partners). The Company originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (inventory finance or floorplan) loans. The Company operates through two segments: Manufactured Housing Finance, and Recreational Vehicles and Marine Finance. It operates through three businesses: Triad Financial Services, which manufactures home loans; Source One Financial, which is engaged in nationwide marine and RV lending; and Intercoastal Finance Group, which is engaged in national marine and RV lending. It provides prime credit portfolio solutions: Secured consumer loan portfolios, which manufactures home loans, and Secured consumer loan portfolios, which provides marine and RV loans.


TSX:ECN - Post by User

Comment by pierrelebelon Oct 13, 2021 3:38pm
260 Views
Post# 34002510

RE:RE:RE:Ecn capital gains implication question.

RE:RE:RE:Ecn capital gains implication question.
Blueswin asked "why not wait until the dividend is paid & the share price drops the $7.50?"

Look at the following possibility:

Dividend is payable January 2022 and goes ex-dividend mid December 2021

Someone buying 1,000 shares today would receive a dividend of $7,500 in 2022. If such buyer is a senior living in Ontario (for example) no tax is actually payable on "eligible" dividend income up to about $40,000 a year (thanks in large part to the dividend tax credits - both federal and provincial)

Now, that same buyer could sell the shares in late December (after it goes ex-dividend) at a loss of $7.50 per share so (give or take a bit).  That capital loss of $7,500 could be used to offset other capital gains in 2021.

As stated above, this is a possibility.  We will know more once the record and payment dates have been made public by ECN.
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