Life & Banc Split Corp T.LBS

Brompton reports LBS unit NAV @ $17.63 to AUG 04

[mouserman]

After the preffered portion is taken off the commons have a value of  $7.58 as of the close yesterday.
Today the UNIT NAV will have gained about 8 cents, so would be $17.71
Value of the commons today would be around $7.66. Premium would be 99 cents at the close of $8.65
Works out to  12.9 %. One of the lowest premiums in the split funds i watch. FTN today would have a premium of just over 10% , and pays about 16.7% yield per annum. Only one i see that is a better value considering lowest premium  to NAV.

[superfido10]

You may be right about your numbers but it was not too long ago that LBS stopped their dividend distribution for close to a year. Is that in the cards again? I won't take a chance.

[mouserman]

 Nearly every split fund common was suspended when the pandemic hit and everyone thought the world was ending. Right now there is about 3.20$ of safety coverage for LBS paying to commons ,so  it will take a long time for the Canadian banks and lifecos to fall that far again. If they do, several of the split fund commons will stop paying  ( or continue not to pay) before LBS gets

[thinkyourmoney]

I was in and out of split shares and found this the best.  There have been 2 groups of months where the dividend on these units was suspended as far back as the graphs will go...2006ish. One group was 8 months in 2008/2009 and the other was in 2020 (Covid). This is Canadian Banks and Lifecos man!!  That is a total of $21.60 (216 months) - $1.60 (16 months X $.10)  = $20.00 net