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Dividend 15 Split Corp T.DFN

Alternate Symbol(s):  DFNPF | T.DFN.PR.A | DVSPF

Dividend 15 Split Corp. is a Canada-based mutual fund, which invests primarily in a portfolio of dividend yielding common shares, which includes approximately 15 Canadian companies. It offers two types of shares, including Preferred shares and Class A shares. Its investment objectives with respect to Preferred Shares are to provide holders with fixed cumulative preferential monthly cash dividends in an amount of $0.04583 per Preferred share to yield 5.5% per annum on the $10 repayment amount and to return the $10 repayment amount to their holders on the termination date. Its investment objectives with respect to Class A Shares are to provide holders with regular monthly cash distribution targeted to be $0.10 per Class A share and return the original issue price to their holders on the termination date. The net asset value per unit must remain above the required $15 per unit threshold for distributions to be declared. Its investment manager is Quadravest Capital Management Inc.


TSX:DFN - Post by User

Bullboard Posts
Comment by JohnWalkeron Aug 21, 2019 3:29pm
86 Views
Post# 30051849

RE:Help me dive into this one...

RE:Help me dive into this one...When you see posts referring to NAV at approximately $17  (they were $16.98 as of August 15th and the 16th and 19th were GREEN for most of their fund individual components so their "guesstimated" NAV is currently $0.10 to $0.30 north of $17) you must realize that what people are talking about is NAV per Unit.

A Unit consists of one Class A share and one Preferred share. The NAV for the Preferred shares are a nominal $10 (although actual share price varies (currently about $10.25). The NAV for the Class A shares is $6.98 mentioned in the first paragraph. $6.98 + $10.00 = $16.98 PER UNIT.

Regarding returns upon fund termination. It's highly unlikely that you will see this fund terminate. It's their most successful fund and as termination date draws near they are almost always extended for a further 5 year period. However, if they do terminate, the payout goes to the preferred shares first, so you won't see anywhere near $15 if you buy Class A shares only. You get whatever remains after preferred shareholders are paid.

The good news is this fund (since inception) has NEVER missed a monthly dividend on Class A shares. The upcoming dividend for Class A shares will be their 185th consecutive dividend (over 15 years without missing a dividend). Of course past results are no guarantee of future performance.

At current prices Class A shares yield about 14% (paid monthly) so they are very attractive. But make sure you know what you are getting into. If you are not familiar with them, study up on Split Share Funds.

Good information from Quadravest and this particular fund can be had at ...

https://www.quadravest.com/dfn-fund-features


Bullboard Posts