North American Financial 15 Split Corp T.FFN

glad i loaded up yesterday

[Chefboy69]

when you see this at almost a 20% divi yield...

YOU BUY....

and to the short bashers......not sure why you would short a financial fund?
so weird....


congrats to those that loaded up

[mouserman]

The problem with that high yield is that you need capital gains to sustain a payout that is much higher than most of the other split funds. The payout today was 11.335 cents per share for commons and 5.625 for preferred. Basically 17 cents. Today banks are having a rebound bounce... but the Unit nav is still precariously close to 15$ ....risk is not worth the reward imo, with a ridiculously high

[mdoldon]

But... you don't seem to be taking any account for the potential drop in NAV?  The units right now are very close to the minimum NAV for payouts, and once it drops below that, the stock price typically craters if the market deems it likely to stay down..  The raw yield doesn't help if the divident isn't paid for (14?)months as we just saw in 2020-21.   I get it, it

[ClydeTower]

The only thing holding back Quadravest from declaring an overnight offering on FFN is the small discount to NAV on the preferreds. The second the prefs trade at a premium, there will be an offering and FFN will come crashing down. Its pretty obvious.

[alkhor]

I don't think they will do an offering when the NAV is so close to the cut off level for stopping the divvy. There would be a lot of investors who would be really pissed off if they lost the divvy so soon after an offering.

[ClydeTower]

FFN class A shares trade at a whopping 31.5% premium. There is no way Quadravest will pass it the opportunity to cash in. They could care less if investors lost the dividend. IMHO...

[PileOfShit]

This post has been removed in accordance with Community Policy

[mdoldon]

Hmm.  I'm confused here.  I see lots of people arguing over whether Quadra will make another offering.  Since those always sell at slighly above the market price, why are we assuming that it's entirely Quadra's choice?  The overnight offerings are the result of negotiated prices with  underwriters, who are WELL aware of the cutoff.  So what underwriter

[alkhor]

This is from April 8th I still laugh when I read this. Every post back then was about when the divvy would be suspended and then you get this post who the poster obviously had not read mouserman or POS posts. The train was coming off the tracks 2 months ago and some investors will still buying tickets.