Dividend Growth Split Corp T.DGS

Longer term strategy / end game

[ehud42]

If the lack of dividend is just for a few months, then the next couple months present a buying oppurtunity, right?

But nothing lasts forever, so what's the end game of these splits? If they fail to pay, people pull ther funds, the price drops, they can't raise capital, and ... ?

People have long talked up DGS' diversity as being a long term strength. So, what's the risk this fund goes away this year? comes back stronger than ever? languishes, barely paying every now and then?

[EdPaquette]

Anyone giving a good answer needs a crystal ball.   

[ehud42]

A different question: Are there splits that have recently withered up and disappeared/died and are there any post mortems on why they couldn't come back from whatever mortal wound they sustained?

[Nakate]

Not really, just look at a long term chart, Capital gains plus a long shot on a divi bonus, if you buy at the lows and sell when its high, lot of shorts working here too.  

[Nakate]

Also as an example I bought 500 dgs in the 6's in 21  sold in 22, in the low 7's and collected the divi for a year, and am now looking for an entry point for the commons, I also bought the preferreds on friday for the div. sure it could go lower but the chart say not much barring a major event

[Mmb060]

Why would fund go away ?  NAV on ClassA can even be negative and fund will still exist.  The parent company of the split ( Brompton in this case) still makes fees.

[EdPaquette]

They can be delisted by tsx if shares are too cheap for too long. Somehow ftu, osp and other duds are still there, but who knows how long. 

[EdPaquette]

Last night I call osp a dud, today it's consolidating.  :)

[flamingogold]

Consolidation is hard to come back from. Not too long ago the bulls were calling for $150 oil, some as high as $300+. Instead, they got whacked with a 50% off sale. Being contrarian keeps me on my toes. I always shake my head listening to a group of people chatting it up about "what's hot", only to hear later they've gone to GICs. Maybe like this pumper who called for $380 oil

[navgod]

Aah the infamous Pulcan -- let sleeping dogs lie.