Dividend15Split(DFN)vs Cornerstone Strategic Value Fund(CLM)I been following Divident 15 split for sometime and respect it's fund for its high yield, portfolio and history of rewarding its share holders since 2004 in Canada among banking, energy, and telecom sectors by Quadravest
I was doing a basic calculation when investing this fund in TFSA account using $1000 CAD with a US FUND that's higher yield in Cornerstone Strategic Value Fund(CLM) that tracks S&P500 of all USA sectors since 1987. It pays 21% of NAV each year and delivers monthly dividend. I calculated to see if i can get more yield each month despite the 15% withholding tax:
| Symbol | Share Price (CAD) | # shares buy w $1000 (CAD) | last dividend with shares owned
(CAD hedged) | 15% IRS taxes | dividend (CAD Hedged) | Adjusted Yield |
| CLM-A (CAD converted) | 14.152 | 71 | $13.81 | -$2.07 (by IRS) | $11.74 | 14.10% |
| DFN-T | 8.3 | 120 | $12.05 | | $12.05 | 14.40% |
Interestingly, I wanted to find out if it was worth paying the 15% dividend tax by IRS in TFSA for CLM-A. What i found was DFN-T still comes out ahead as the 15% IRS withholding tax made the difference in a TFSA account. What also needs to be considered is the currency conversion costs when buying.
note: DFN has had 4 payments missed in 2020 given their rare occasion of falling below NAV price during covid19. CLM may still make much sense in a RRSP account. but its worthy to note these two funds are different holdings and indices. One can make argument CLM fund is better diversified given its an American index but also comes volatiliy and consistency of a dividend each month and never missed a payment since 1987.
Anyone on this board ever compare DFN with CLM? what are your thoughts as a Canadians seeking yield from DFN?