Dividend Growth Split Corp T.DGS

Quarterly Concurrent Retraction

[navgod]

Will recieve full $14.93 on over 40k units retracted. Will start to replace currently at a level  44 cents lower. See you in three months. GLTA

[Eoj123]

Question. How do you know it's 40k units? And why do you say 44 cents lower? I'm not sure where those numbers come from. Thank you

[navgod]

The 40k+ units is the amount I submitted into the retraction. The 44 cents is the difference between the end of Nov NAV which I will receive and the trading levels of DGS/DGS.pr.a at the time of my post. Hope this clarifies things.

[mouserman]

Navgod is ahead of most of the split fund players who follow these boards, ( including myself)  . Retraction of units is a bit complicated, but he certainly has it figured out.  Congrats on a great move.

[Mmb060]

I thought this was just an renewal retraction option ?

[alder]

I'm confused. The Brompton site from the Preferred Share Primer states : Preferred Shares are redeemable at the shareholders option at the end-of-term. Is there a difference between retraction and redeeming ? Otherwise it certainly sounds like it can only be done at maturity. Regards Alder

[AnEducator]

DGS is the only split share that features a Quarterly Concurrent Retraction privilege. This allows all investors to redeem their shares every three months at NAV, but you must redeem an equal number of both classes of shares together. These retractions are not always profitable as it is sometimes better to simply sell your shares into the market. One example of this was the Annual Concurrent

[alder]

Thank you very for such a thorough explanation. Interesting that DGS is the only split share that does this. Since I'm mainly in the preferreds, it's very beneficial that most allow the preferreds to be redeemed on their own. At least, I am hopeful that this is true for FTN and FFN.

[AnEducator]

Both the capital shares and preferreds can be redeemed on their own, but only on a maturity date, which generally occurs only once every five years for most splits. FFN's is due in December of 2024 while FTN's is due in December of 2025. DGS's maturity date is late next year, so the both classes of shares can be redeemed on their own at that time.

[alder]

Thanks again, AnEducator.