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Canoe EIT Income 4.80 Cumulative Redeemable Pref shs Series 1 T.EIT.PR.A

Alternate Symbol(s):  ENDTF | T.EIT.UN | T.EIT.PR.B

Canoe EIT Income Fund (the Fund) is a Canada-based closed-end investment trust. The investment objectives of Fund are to maximize monthly distributions relative to risk and maximize net asset value, while maintaining and expanding a diversified investment portfolio, primarily through acquiring, investing, holding, transferring, disposing of or otherwise dealing with or in equity and debt securities of corporations, partnerships, or other issuers and such other investments as the manager may determine in its sole discretion from time to time. Canoe Financial LP is the manager and portfolio manager of the Fund.


TSX:EIT.PR.A - Post by User

Comment by 1wealthtreeon Aug 29, 2020 3:59pm
231 Views
Post# 31475622

RE:RE:RE:RE:RE:Div payment questions

RE:RE:RE:RE:RE:Div payment questions
to reply to your Q why the rich dividend.  article below from motley fool describes it:

The Canoe way

On the surface, the Canoe EIT Income Fund (TSX:EIT.UN) is very similar to the BMO ETF we just looked at. Both funds use an active management approach to choose the best stocks for a covered call strategy, and both funds own a similar range of stocks. The only difference is the Canoe fund also owns some U.S. blue-chip stocks.

If they’re so similar, then how can the Canoe fund yield an astronomical 13.2%, a payout that is approximately 50% higher than offered by the BMO ETF? And this is after investors pay a management fee of more than 1%, which is much higher than the other ETF we just looked at.

The answer is one word: leverage. The Canoe EIT Income Fund uses borrowed money to goose its returns. But we must remember that leverage is a double-edged sword. It’s great when things are going well, but it causes big declines when the market suffers.

I’m also confident the Canoe fund can maintain its yield over the long term. The payout — which is currently $0.10 per share each month — has stayed the same since 2009. Additionally, this fund hasn’t missed a payout since debuting on the Toronto Stock Exchange back in 1997.

https://www.fool.ca/2020/06/25/diversify-your-portfolio-with-these-2-8-yielders/

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