DIVIDEND 15 SPLIT CORP II T.DF

Alternate Symbol(s): T.DF.PR.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 threshold for monthly dividends to be declared; and on or about the termination date, to pay the holders of Class A shares at least the original issue price of those shares. The investment objectives with respect to the Preferred shares are to provide holders of the Preferred shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04792 on the $10 repayment amount per Preferred share to yield 5.75%, and to pay the holders of the Preferred shares the $10 repayment value of those shares. Quadravest Capital Management Inc. is the investment manager of the Fund.

TSX:DF - Post by User

DIVIDEND 15 SPLIT CORP II

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Comment by FlintNewellon Dec 18, 2015 10:43am

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Post# 24395107

RE:It will go back up. Graph says so.

Paying a premium on NAV with no dividend backing it at the moment is not what I would call a bargain. At the current price ($5.91), you would be paying a 30% premium over NAV ($4.52) in the hopes that NAV will go much higher than $15 to allow for a sustainable dividend.

If DF runs into the issue of only being able to a pay a dividend every few months or so, you'll quickly find that investors won't be willing to pay that premium to NAV.

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