Bullboard - Stock Discussion Forum DIVIDEND 15 SPLIT CORP II T.DF

Alternate Symbol(s): T.DF.P.A | DVDDF

Dividend 15 Split Corp. II is an investment company, which invests in a portfolio of 15 dividend-yielding, Canadian companies. It offers two types of shares, a Class A and Preferred. The investment objectives with respect to the Class A shares are to provide holders of the Class A shares with regular monthly cash dividends. The net asset value per unit must be above the required $15 per unit... see more

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DIVIDEND 15 SPLIT CORP II > Chances of ever doing a similar FTN Reverse Split??

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Post by Sugaree on Jul 31, 2022 4:48pm

Chances of ever doing a similar FTN Reverse Split??

FTN did a reverse split 4 for 10 in December 2020 after 9 months of missed dividends. That is harsh, investors got 60% of their investment instantly wiped out. Anyone know why Quadravest would do that? Has anyone heard of any other split fund doing something this drastic?

Could Quadravest do this again, this time to DF?? I want to take a shot on this recovering to pay a sweet yield by buying in while it is so low, but this reverse spit they did to DF scares me.

Anyone, have any words of wisdom on Quadravest and reverse split?

Thanks in advance.

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Comment by Sugaree on Jul 31, 2022 5:42pm

I meant below: "this reverse spit they did to FTN scares me."

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Comment by TickerTwit on Aug 02, 2022 9:27am

A split (or reverse) in itself cannot produce a gain or loss to shareholders. How did the 60% instant loss occur? .

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Comment by Sugaree on Aug 02, 2022 9:55am

Well, anyone with 1000 shares suddenly only had 400 shares, stock price actually dropped from $8.22 to $7.75 after consolidation. It took 3 months to regain $8.22. Technically, this reverse split should have more than doubled the stock price. Also, when dividend was reinstated in was still not materially increased, .115 to .126. So, 1000 x $8.22 = $8220 400 x $7.75 ...more

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Comment by EdPaquette on Aug 02, 2022 9:59am

Sounds like you are afraid of what could happen in the markets. The answer is sell out and buy GICs instead. Solved.

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Comment by Sugaree on Aug 02, 2022 10:21am

I am not afraid of what could happen in the markets, I am afraind of what could happen to another split fund such as what happened to FTN in Dec 2020. I am not in any split funds yet, but am thinking about it after 2.5 years of huge O&G gains in Nuvista Energy. 33 cents to $11. Time to move some capital gains into some sweet monthly dividends.

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Comment by navgod on Aug 02, 2022 10:11am

FTN did a reverse split because pref holders redeemed the majority of their shares. They had this right with the fund's maturity date. Quadravest had no choice in the matter and it had nothing to do with missed divi payments. While FTN investors did not get 60% of their value they were hurt to the extent the premium over NAV got wiped out. At this point in time this is not a risk for DF. ...more

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