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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 petebrown1963on Sep 07, 2020 3:04pm
157 Views
Post# 31518148

The truth about NAV

The truth about NAVThe NAV is insignificant. The NAV is the breakup value of the shares, but if the shares don't get broken up, you don't get your NAV. Very rarely do split share companies breakup and return cash. I'm having trouble coming up with a single Canadian example. 

The share price follows what investors will pay for the dividend. This depends on three factors:
1) The main one being the perceived frequency of payout.
2) The perceived amount of payout. For DFN this has never changed. But it could change in the future according to the offering memorandum. 
3) The payout relative to interest rates ie. where one can get yield from bonds, other dividend stocks etc.

The dip in March had nothing to do with NAV. It was a dip based on the perceived coming halt to the dividend payout and uncertainty about when the dividend would resume. 
Bullboard Posts