Dividend 15 Split Corp T.DFN

DFN unit nav to July 15 = APPROX: $17.48

[mouserman]

SO my spreadsheet had the gain at 6 cents since the june 30 update.. and that puts the UNIT NAV at $17.48 before distributions.
LAst trade at 8.09 gives us a premium to NAV of only 8.2%
DFN one of the best deals in the split fund space here, especially if you like diversity with a big % in financials. Yield now a paltry 14.8%..... i can live with that tho...

[flamingogold]

It took the worst market since the Great Depression to finally crack a stellar streak of uninterrupted tax advantaged distrubtions. DFN got ahead of itself early on during the recovery as money piled in to grab cheap shares with the bet pandemics don't last and would be back to paying monthly for years to come again.

[Moneyman70]

2008 was arguably worse and they kept paying then.  Do you know why? Because they were less exposed to the overall market but they've issued so many shares in the intevening years that they lowered the NAV to the point where it couldn't withstand the inevitable market crash.  They are in an even worse position now that if the markets drop 15% they will be underwater again. And

[Kylemcc10]

Don't they have to issue shares. That's the double edge sword of a split fund. How else are they paying that yield. This will never be a growth stock unless their holdings are a straight line up. 

[BlueJay2020]

Who said this was a growth stock?  

[Kylemcc10]

Nobody but you're criticizing exactly how split funds need to operate 

[Kylemcc10]

Still wrapping my head around split funds that's all. Just seems like a hold on and hope the dividend brings you ahead when the fund inevitably be diluted down 

[mouserman]