RE:RE:RE:Is this and other Quadravest investments a dividend trap?amugsgame wrote: Exactly as Chessplayer said!. The dividend trap is not understanding the split fund structure. Once understood the funds can be played long/short to healthy profits.
I appreciate what you and chessplayer both said. Here is what I understand about the split fund structure so far: Class A shareholders get paid if the unit nav is above $15 Preferred shareholders get paid regardless/first Class A shareholders can go many periods without receiving anything (ie. Until NAV is above $15) These funds are a basket of holdings that quadravest holds, instead of being a single company stock There is a maturity date which typically extends every five years (although not guaranteed). All the above is what I understand so far. So again, right now the yield appears to be around 30% or so. The unit NAV is under 15 so class A shareholders won't get anything yet. But if you purchase now, you'd be getting an equivalent of 30% yield in the future. Am I not correct? (I know as stock price goes up the yield percentage is obviously lower, but if you buy at today's prices, it would be equivalent to a 30% yield when this starts paying again)