Dividend 15 Split Corp T.DFN

DFN is a steal right now

[devi01]

Folks this is one of the great opporunity to buy DFN. Here is why

Facts
DFN has been around for about 19.5 years which translates into 12 x 19.5 = 234 months 
Out of 234 months DFN has only missed 5 payments
So that means 229 payments out of 234 This translates into 229/234 = 97.86 % payment rate

My Scenario
Now assume you buy it today at  ~3.90 and a yield of ~30% and invested 10K for 10 years
You keep it for next 10 years
Total payments = 10 *12 = 120 and to be safe assume that payment rate is 90% and not 97.86%
This means = 120 * .90 = 108 payments 
Final numbers
Units owned = 10000/3.9 = 2564
Payments @ 90% = 108
Total payment = 2564 * .10 * 108 = 27691
Assuming after 10 years if you the stock price remains same at 3.90 you would have roughly quadrupled your money.  from 10000  to  10000 + 27691 = 37691

Most important thing
You have to be paitent investor to reap this benifit

[Rakaposhi]

That would only be true if the fundamentals of the stock were static over time. But they are not and the value of the stock itself has been cut down drastically over time.

[devi01]

Dear @Rakaposhi,  That is true if economic conditions never improve. But remember it's a cycle and great compnies will always shine in long term once the storm is over and that is why I sugested paticence is required. Hope we all make money :) 

[Couchpilot]

I agree. This is the time to be buying not selling funds weighted in banks and telcos. They've been suffering from the interest rate hikes that we know can't go on for ever. Who knows when rates reverse course. When they do, it will start to pay off. Good time to start a position and accumulate if you don't need income from it immediately. Just don't invest unless you have a good

[devi01]

@Couchpilot I cannot agree more with you on that " can't go on for ever.". Remember what genius buffet and munger says buy when every one is fearful and sell when everyone is greedy. I bought a ton today and in process to but more in a weeks time.

[vhood1]

But people are still being greedy right now.  Don't confuse the drop in high flying highly leveraged ETFs with fear.  The VIX is still only at 18 right now.  Well below it's historic average.

[Justreality]

I am speechless. Every once in awhile you come across a classic post. This is one of those. Absolutely unbelievable.

[Justreality]

I am speechless. Every once in awhile you come across a classic post. This is one of those. Absolutely unbelievable.

[Kylemcc10]

Payment history means absolutely nothing on a fund that's paying out way more cash than what's coming in. That dividend doesn't come from fairly dust. Look at the long term chart of Dfn and you can see where this is headed. It's returned negative over 5 years and the base NAV has eroded down. They either do some sort of consolidation or the tsx magically rips 20% annual from here

[Couchpilot]

Well if you want to go long term why not 2009-present? But this time include all the roc. Because roc is real. When it lands in your account you can buy stuff with it. It paints a completely different picture. I get that you don't like the instrument. No harm no foul. But that's the problem with selective hindsight chart analysis (including my example). You can paint all kinds of scenarios

[devi01]

I see your point. All I can say is the day DFN starts paying again it will start trading at a decent premium and at that point if you don't like this fund get rid of it. 

[oldbrit34]

I would say don't let DFN steal any more of your money....Sell

[Mmb060]

Used stockchannel...   DFN vs XIU  Arbitrary picked Jan 2, 2015. Distributions reinvested.. 10k invested.. Current value $10,052  ( peak was around 18,500) XIU would currently be $17556 ( peak also around $18,500)