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

Dividend Growth Split Corp

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Comment by navgodon Mar 31, 2020 8:45am

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Post# 30863302

RE:DGS unit NAV jumps by .43

In the current enviroment % premium/discount to capital share NAV is not really that relevant. Unit price/Unit NAV is a more valid comparison. For example, as of March 30th DGS/DGS.pr.a unit price of 11.57 is a 4% discount to the unit NAV of 12.08. Most if not all split share cap shares currently trade at a premium to Nav if viewed in isolation. However if viewed as Unit price to Unit nav they trade at a discount with the exception of a few cases such as FTN/FTN.pr.a currently at a 12% premium. The finance behind why the Prefs are trading at a discount and the amount of that discount is too complex for this forum but is in part driven by the extreme levels of implied volatility in the market. GLTA

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