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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
Post by Safetraderon Oct 24, 2019 10:25am
109 Views
Post# 30263988

Made some $ but got out this morning

Made some $ but got out this morningEach time they make an offering the divy return gets swallowed by share price going down. Too many of those makes it a bad investment.
 
As much as it is nice to get a safe divy income each month, we need to look at full picture (net profit on investment). Split shares are pretty risky and return should be better than Financial ETF.

If someone bought on last Offering of $9.05 on April2 at low price of $8.75 ............When I do maths tomorrow's,  price could fall to $8.45 ($8.75- 3.5% like in April).  So add up the $0.60 div received form May to Oct........this gives $9.05 which is 3.4% return on the $8.75 invested in April.
This would be 6.8% /year.

When you look at FIE.TO since April 2 ......for example you could have bought at $6.72 Price today is $7.11 + Divy (6x $0.04) for $7.35 or 9.3% on 6 month........That is why we can't chill that much.

I see this as risk /reward being too low on any split shares.


Bullboard Posts