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 theblackestcaton Mar 28, 2017 1:27pm

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Post# 26041352

RE:Need some clarification

Hey John,
Yes you have it pretty much correct.

But the Nav of the unit must be $15 after distribution (10c +5-7c depending on the payout of the Per. shares) so Nav of $15.15-$15.20 will cover it

And yes downside risk to the class A would be if the entire market goes wayyy down and the portfolio NAV bring the NAV below the $15.15

A simpler way of looking at it is assume the perf shares are stable at 10$ and then just monitor the class A units and as long as they are trading above $5.25 there is nothing to worry about.

Cheers
TBC

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