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Dividend Growth Split Corp T.DGS

Alternate Symbol(s):  DDWWF | T.DGS.PR.A

The Funds investment objectives are to provide holders of Preferred shares with fixed, cumulative, preferential, quarterly cash distributions and to return the original issue price of 10.00 per Preferred share to shareholders at maturity; and to provide holders of Class A shares with regular monthly cash distributions, targeted to be at least 0.10 per Class A share, and the opportunity for growth in Net Asset Value per Class A share. The Fund invests, on an approximately equally weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, the Fund may hold up to 20% of the total assets of the portfolio in global dividend growth companies for diversification and improved return potential, at the Managers discretion.


TSX:DGS - Post by User

Post by AnEducatoron Jan 23, 2023 11:08am
291 Views
Post# 35239776

Distribution Policy

Distribution PolicyFor everyone's benefit, the following was extracted from the latest Annual Information Form:

No distributions will be paid on the Class A Shares if (i) the distributions payable on the Preferred Shares are in arrears, or (ii) in respect of a cash distribution, after the payment of a cash distribution by the Company, the NAV per Unit would be less than $15.00.

The dividends accrued and therefore owing to both classes of shares would need to be accounted for in determining the accurate NAV per Unit post-distribution, and these potential distributions must not result in a violation of the $15.00 minimum NAV threshold.

Perhaps others here may have a different interpretation, but in any case, there appears no reason to believe Brompton is restricted to using Thursday's NAV calculation when declaring dividends.
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