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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

Comment by oldbrit34on Apr 04, 2023 11:35am
142 Views
Post# 35378715

RE:Bags

RE:BagsI have often thought about your last sentence. I have been following HMAX which offered an annual return of 13.93% when it came to the market about 2 months ago.It is using an at-the-money covered call strategy on 50% of the portfolio. As of today the nav of HMAX is $14.93 and the stock price is $14.85. You could say "so far so good" but this return is very ambitious for a fund only investing in one segment of the market. It seems that there has to be occasions in the future when selling some of the fund is the only way to maintain the monthly payout. It used to be that the market believed that any dividend payout over 8% indicated trouble ahead and certainly if it was over 10%. The market also used to say " No amount of dividend makes up for loss of capital"
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