Dividend Growth Split Corp T.DGS

DGS premium should start to disappear.

[mouserman]

ALL of the top 10 including BDIV are down today again, and DGS heading to sub 4$ level here in the next few sessions. Only a few holdings  in green numbers , and they are  NOT green by much

[Bagobags]

People are stubbornly holding on for that yield but realistically, even with a market rebound; this won't pay until June/July.

[mouserman]

JUne ,JULY / is probably optimistics. Inverted bond yields are a pretty reliable sign of an upcoming recession. It was time to get out of these split funds  and into gold, /commodities etc.. Happy with my transition to WPM... and added some MMP.un today.

[Bagobags]

Good call on WPM, that's exactly where I moved my DGS funds. Sold my WPM at $69 and am now holding cash...any thoughts on moving to bonds?

[Bagobags]

Correction, sold at 60...bought in the high 40s and figured I'd secure the profit

[mouserman]

Low yielding bonds have never excited me, and when the yields increase it is because of the investors unloading them to try and save their portfolio. This particularly is the case when the FED jacks up interest rates with historical speed. And its amazing how the mortgage rates skyrocket, but savings accounts still get next nothing for interest.

[itsthehitman]

And the big question is...if this situation persists....should we all set stop losses now and where to park all the cash until things hopefully turn around? 

[flamingogold]

That strategy usually does not pan out because there is a good chance of missing the best days. No one can time a market. Rebalancing is ok, but exiting to cash and waiting for "the bottom" is not. https://www.cnbc.com/2021/03/24/this-chart-shows-why-investors-should-never-try-to-time-the-stock-market.html

[JohnWalker]

I was just looking at that (the premium) and doing some comparisons today. The 52 week low for DGS is $4.51 and that was about mid-July 2022. At that time NAV was around $4.60. Today NAV was reported at $4.28.  I'd love to see DGS drop back to $4.51 again (and maybe it will in time) but it sure seems to be very sticky. I don't understand what people see in it or what they expect from

[Bagobags]

Greed > Fear on this one for now imo...people don't want to give up on 20% yield (even if yield is currently 0) and don't want to take loss by selling now 

[Mmb060]

I hope so.  Ive shorted ( hedged via XIU) DGS under assumption that premium will soon reduce ( but will cover if premium down to 50c)

[navgod]

You are fortunate to be able to short DGS - have been trying establish a short for a month without success. Did manage a short on DFN off set with DF. GLTA