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Canadian Life Companies Split Corp T.LFE.PR.B


Primary Symbol: T.LFE Alternate Symbol(s):  CLSPF

The Companys investment objectives are (i) to provide holders of Preferred Shares with fixed cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price (ii) to provide holders of Class A Shares with regular monthly cash distributions targeted to be $0.10 per Class A Share to yield 8.0% per annum on the original issue price and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012. The Company will invest primarily in a portfolio of common shares of Proceeds: (the ``Portfolio) which will include the following publicly traded Canadian life insurance companies (the ``Portfolio Companies), each of whose shares will generally represent no less than 10% and no more than 30% of the net asset value (``Net Asset Value) of the Company: Great-West Lifeco Inc.


TSX:LFE - Post by User

Comment by mousermanon May 23, 2024 1:30pm
52 Views
Post# 36054290

RE:The ghost of 5 returns

RE:The ghost of 5 returns
flamingogold wrote: LFE will be paying but above $5 seems to be an omen. Never seems to hold for long. We would need an explosion of inflation and higher rates for LFE to stay in the payment zone for an entire year. Personally, I am not in that camp but I would say owning a split that is below it's NAV makes for a good capital gain play and that is how I look at this one and the distribution, when it pays, is gravy.

In the past the conditions for lifecos were not same as they are at present. Was hard a few years ago with near 0 interest rates , for the insurers to find good returns on the premiums collected.
That has changed with interest rates now higher for longer in the US,, and destined to drop a quarter of a % in Canada in JUNE.
 AS i love to say , history is for losers.. A ten year chart will give you the impression that this one is a bad gamble. But fundamentals suggest otherwise.
Since MAY 15th LFE has the biggest gain in the Quadravest split funds, and probably Brompton's as well. I see now that FTN , FFN and BK all are showing a loss since the 15th  at present today. I doubt that will change by the close. LCS is still with a gain, but  a bit smaller than LFE.
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