Dividend Growth Split Corp T.DGS

DGS unit nav to April 1=$15.48

[mouserman]

Leaves the commons value at 5.43 ..... and this I do believe is AFTER the 10 cent distribution, which i believe comes off after ex divvy date.

[ehud42]

So what's driving the premium? Optimistic (mid-long range) outlook on potential further capital gains or short term excitement about 20+% dividend?

[mouserman]

I think some believe that the financials have mostly ran their course, so split funds that are diversified in the more beaten down sectors, will have more upside in the economic recovery being priced into themarkets.. I think overly optimistic views of the economy, which is driven by helicopter money from the feds. Taxes on business are going up, and generally this isnt good for the economy

[flamingogold]

We could be on the cusp of a global economic boom. A lot of money was pumped into the system to stave off deflation, massive structural job loss and an ugly depression not seen in over 90 years. The bet is on that it's working and that this decade could see robust growth. Check the chart post financial crash of 2008 to get a glimpse of the potential stock trajectory near term.

[JohnWalker]

Trading at a 9.5% premium this morning. If we see this go above $6 I would be expecting an overnight offering at almost any day now. I hold some - not too much though. So very hard to decide whether I want to sell here and capture gains and then wait for an offering or hold for more capital gains.

[JohnWalker]

Wow! 1 minute after posting this and premiums have jumped to 10.3% ???

[flamingogold]

Possible but timing it is a roll of the dice. If you want to rebalance because your portfolio has become overweight due to the growth that's one thing but otherwise timing is a roll of the dice. You may not get back in. I sold LBS at $7 and immediately rolled it into DGS so I continued to capture gains. Had I gone to the sidelines and waited for a pullback without buying DGS I would have

[SmellsofMoney]

I sold half @ $5.99.   So now I'm good either way.  There's still a good two weeks before they announce so I'd assume there's some play between now and then.

[Bully88]

Really appreciate the update on the Unit Nav and your calculations. Question, Is this based off the top 25 Holdings of the portfolio as listed on their website? or do you have the list of every stock held in their portfolio? If so, can you please provide that full list? Thanks

[Bully88]

So I was able to check Sedar and I found the list of all the shares or every company DGS holds as of Dec 31. 2020 I put it into a little spread sheet to calculate how much dividends the portfolio brings in  Name Shares    div amount   total cad quarterly div   total div x shares

[mouserman]

Those dividends collected will only pay the preferred distributions at best. DGS common shares need capital aprreciation from the holdings  to stay above  the 15$ threshhold.

[mouserman]

BDIV has quite a large portfolio of stocks in the ETF, but pays out 6% or more monthly, so we can say those stocks also a part of DGS diversification, altho there are a few that are kind of  doubled, being  held outside of BDIV  and also in DGS main holdings. DGS is fairly active in changing up the holdings in the fund, so anything  3 months old, is not of  much use.