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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 amugsgameon Oct 24, 2019 1:15pm
126 Views
Post# 30265290

RE:RE:Nature of Split Funds

RE:RE:Nature of Split Funds I don't consider myself an "expert" - but rather informed. The only way the "A"s on any split can maintain the return (in the initial case of DFN 8% based on $15 SP and $1.20 year distribution) is for the NAV value to be continually rising and for the brains behind the fund to be brilliant in selling call options. The financials generally pay dividends of 3 / 4% so how do you get to 8% from that? By dipping into the cash on hand thus reducing the NAV These funds don't call the monthly payments "dividends" but rather "distributions". The payments are basically a return of initial capital. In the case of DFN the inital $15 is now worth $8.50 and something like $18 in distributions - not a great return for a 15 year investment. The trick with the splits is to play them close to the $15 mark when volitility allows for the potential of a good monthly payout and SP increase. As well shorting at the $15 level with a close eye on the NAV makes for easy returns      
Bullboard Posts