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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

Bullboard Posts
Comment by JohnWalkeron Aug 10, 2019 11:00pm
106 Views
Post# 30015426

RE:RE:RE:RE:RE:RE:RE:RE:Trading well below NAV

RE:RE:RE:RE:RE:RE:RE:RE:Trading well below NAVIt's really quite simple. I don't see why everyone wants to make it such a complicated question.

Here is the link to the common (Class A) share NAVs updated weekly and quoting the NAV as of closing from each Thursday night.

https://www.bromptongroup.com/products/split-share-class-a-share-investments/

You will see the NAV for DGS Class A is currently $4.91.

Here is the link to the Preferred Share NAVs also updated every Thursday night.

https://www.bromptongroup.com/products/preferred-shares/

If you follow the Preferreds share NAVs you will see they are NOT based on a closing TSX value. Instead they are an arbitrary value that starts out at exactly $10.00 immediately after paying Preferred Dividends. Each week the Preferred NAVs increase by $0.01.

Currently the NAV is listed as $10.10 because 10 weeks have elapsed since Preferred dividends have been paid. In two weeks time (just before dividends are paid) the Preferred NAVs will be listed as $10.12 (increase 1 cent each week). That is what they mean by accruing the the cost of dividend weekly.

So in two weeks from last Thursday the UNIT NAV (a UNIT consists of one Class A share plus one Preferred share) will be $10.12 plus whatever the NAV of the common share is.

Now if you return to the first link above for Class A shares, at the bottom of the page you can see Note 3)

No cash distributions will be paid on the Class A shares if, after the payment of the distribution by the Company, the NAV per Unit (consisting of 1 Class A share and 1 Preferred share) would be less than $15.00


Figure it out, Class A shares have a long way to go in the next two weeks if you want to see dividends.






Bullboard Posts