Dividend Growth Split Corp T.DGS

Alternate Symbol(s): DDWWF | T.DGS.PR.A

The Funds investment objectives are to provide holders of Preferred shares with fixed, cumulative, preferential, quarterly cash distributions and to return the original issue price of 10.00 per Preferred share to shareholders at maturity; and to provide holders of Class A shares with regular monthly cash distributions, targeted to be at least 0.10 per Class A share, and the opportunity for growth in Net Asset Value per Class A share. The Fund invests, on an approximately equally weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, the Fund may hold up to 20% of the total assets of the portfolio in global dividend growth companies for diversification and improved return potential, at the Managers discretion.

TSX:DGS - Post by User

Dividend Growth Split Corp

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Comment by navgodon Oct 19, 2016 4:53am

320 Views

Post# 25359309

RE:RE:How on earth !

"they do it by buying 5 year terms with each stock at a fixed yield" ?!?! They do it by giving you pumped up dividends in trade off against reduced capital gains/increased capital loses in the future.
I own this security because it is less over valued versus its NAV than other high dividend split shares such as DF,FTN,and other Quadravest funds. That said -- there is no free lunch. Owners of this security should not be under the illusion that this dividend payment level does'nt negativily affect future capital value. ps mangement doesn't do holders any favors by doing treasury issues every 4-6 months.

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