North American Financial 15 Split Corp T.FFN

Alternate Symbol(s): FNCSF

North American Financial 15 Split Corp. is a Canada-based mutual fund corporation, which invests in a portfolio of over 15 financial services companies. It offers two types of shares, such as Preferred Shares and Class A Shares. Its investment objectives with respect to preferred shares are to provide holders of preferred shares with cumulative preferential monthly cash dividends in the amount of over 5.5% annually and to pay the holders of the preferred shares a certain price per preferred share on or about the termination date. Its investment objectives with respect to class A shares are to provide holders of class A shares with regular monthly cash distributions and to permit holders to participate in all growth in the net asset value of the Company for a specific price per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying a specific price per preferred share. Its investment manager is Quadravest Capital Management Inc.

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North American Financial 15 Split Corp > Is this and other Quadravest investments a dividend trap?

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Comment by chessplayeron Jun 21, 2022 10:24pm

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Post# 34772879

RE:RE:RE:RE:RE:RE:Is this and other Quadravest investments a dividend trap?

The key to understand split shares is to understand that prefs pay dividends, but commons pay distribution which is basically a return of the capital of the shares held in the fund. If the shares in the fund do not appreciate at a pace greater than the value of what is being paid to the prefs, there will be no value creation for the commons.

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