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Dividend Select 15 Corp T.DS

Alternate Symbol(s):  DVVDF

The Companys investment objectives are to provide holders of the Shares of the Company (Shareholders) with (i) monthly cash distributions, plus (ii) the opportunity for capital appreciation, through investment in the common shares of the Portfolio Companies. The Company has been created to provide investors with an opportunity to invest in a portfolio (the Portfolio) of 15 Canadian companies (the Portfolio Companies) whose shares offer investors an above-average dividend yield, and which have shown solid earnings growth and have a history of capital appreciation. The Portfolio Companies will be selected from among 20 companies (the Portfolio Universe) listed on the Toronto Stock Exchange (TSX) set out below: Bank of Montreal Royal Bank of Canada BCE Inc. Shoppers Drug Mart Corporation Canadian Imperial Bank of Sun Life Financial Inc. Commerce TELUS Corporation CI Financial Corp. The Bank of Nova Scotia Enbridge Inc.


TSX:DS - Post by User

Post by mousermanon Jan 18, 2019 5:24pm
92 Views
Post# 29253922

DS difference

DS differenceUnlike BK and others who are in split funds, with DS the NAV is based only on the portfolio , and is not a UNIT NAV that includes the value of preferreds shares. SO the NAV does climb more slowly for DS. However, DS shareholders do get all of the dividend income received , as well as capital gains, there is nothing paid out to preferreds  (DS has no preferred share component), as with most of the other funds out there. This makes the fund much more sustainable. 
Others like DFN, DGS and FFN, have done many offerings , fattening up the kitty , to keep enough cash to continue paying to common shareholders, while the income received from dividends probably doesnt even cover the payments to preferreds.
DFN just did another one. Last week it was PIC.a from Strathbridge doing an offering.
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