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Dividend 15 Split Corp II T.DF

Alternate Symbol(s):  T.DF.PR.A | DVDDF

Dividend 15 Split Corp. II is a mutual fund. The Company invests in a portfolio of 15 dividend-yielding, Canadian companies. It offers two types of shares, a Class A and Preferred. The investment objectives with respect to the Preferred shares are to provide holders of the Preferred shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04792 per Preferred share to yield 5.75% on the $10 repayment amount and to pay the holders $10 per Preferred share. The investment objectives with respect to the Class A shares are to provide holders of the Class A shares with regular monthly cash dividends targeted to be $0.10 per Class A share. The net asset value per unit must be above the required $15 per unit threshold in order for monthly dividends to be declared, and On or about the termination date, to pay the holders the original issue price ($15) of the Class A shares. The investment manager of the Company is Quadravest Capital Management Inc.


TSX:DF - Post by User

Bullboard Posts
Comment by Intellectualon Dec 18, 2015 10:49am
131 Views
Post# 24395137

RE:It will go back up. Graph says so.

RE:It will go back up. Graph says so.How is this a great bargain? The NAV of the capital shares was $4.52 as of December 15, so in what world does $6.00 represent good value? That's a whopping 32.7% premium to its true value! And if the NAV of the capital shares don't recover to at least $5.00, there will be no no returns on this investment.

The one positive aspect to this fund's structure is the leverage that it provides. Basically $14.52 is invested whereas you only pay $6.00 for the exposure. However, just as this leverage works in your favour in rising markets, it tragically works against you when markets decline.

I would caution everyone to invest analytically and objectively before plunging into a very, very dangerous and ill-advised position. Any one can tell you that a 17% dividend is unsustainable.


Bullboard Posts