RE:RE:RE:FTN vs. FFN?canoehead wrote: Thanks Ed and mouserman. Great info. I think I will get my feet wet by taking equal dollar positions in each to watch and see how it goes. Do you think the premium of 11.7% on FFN is getting into sketchy territory or does it usually trade around that high due to the high payout?
A premium of 10 to 15% is not real bad for high yielding splits that have over a 1$ of safety factored in, and banks and lifecos are quite safe, especially given the current valuations, and stellar Q reports from those.
I generally dont hold splits that carry a premium of more than 20% above the real NAV of the common shares. DGS at the valuation today i consider sketchy as it is currently only about 50 or 60 cents above the 15$ threshhold for paying the commons. I believe the premium is about 18 % or so at the high of the day trade of 6.45.
And today DGS is also seeing a lot more red than green, altho the top 3 stocks in the fund are up.