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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 ChazBrownon Oct 28, 2019 3:38pm
173 Views
Post# 30277958

RE:RE:Trying To Reason Why ...

RE:RE:Trying To Reason Why ...Well MM, you continue to teach me different ways of looking at these splits and evaluating them better and for that I thank you prfusely.  

I was feeling like I was really taking a beating on DGS because I started buying in AUG 2017 at the high 7s, low 8s and have seen massive losses on the SP, but, thankfully, if I average in lots of less expensive shares and the divs I've gained, I'm at an average barely above $5.50 now, so panic averted, and it gets markedly better each time a div is paid... 

When and if this one ever hits $6 again, I'll probably take the opportunity to get rid of it or most of it, and get back in nice and low or look at something else at that time.  

I thought DFN was where I needed to move everything, I mean that dividend is secure AF, but, as you have demonstrated, one needs to look a little closer sometimes and weigh all factors when making these determinations.  

Thanks as always for your insights...

CB
GL&GT


mouserman wrote: All those folks that bought DFN at 9.06 are underwater, even with distributions they are at break even. The ones buying this latest offering at 8.75 are also underwater right now. 
DGS wont be doing an offering at these levels, as they are trading at a discount to NAV.
If DGS pays only half the time this year, the yield will be almost equal to DFN .... 
as DGS pays .10 per share but the shares are only around 5 $ so the yield is over 24%. Half the year would be 12%.... and the upside move could be much stronger . Not as safe for distributions that is for sure, but capital appreciation is much more likely if the rebound comes in the next few months.
I was buying LBS as it trades around its NAV and pays out a higher yield than DFN, and also has a higher UNIT NAV than DFN. Better buy imo.


Bullboard Posts