Dividend 15 Split Corp T.DFN

Alternate Symbol(s): DFNPF | T.DFN.PR.A | DVSPF

Dividend 15 Split Corp. is a Canada-based mutual fund, which invests primarily in a portfolio of dividend yielding common shares, which includes approximately 15 Canadian companies. It offers two types of shares, including Preferred shares and Class A shares. Its investment objectives with respect to Preferred Shares are to provide holders with fixed cumulative preferential monthly cash dividends in an amount of $0.04583 per Preferred share to yield 5.5% per annum on the $10 repayment amount and to return the $10 repayment amount to their holders on the termination date. Its investment objectives with respect to Class A Shares are to provide holders with regular monthly cash distribution targeted to be $0.10 per Class A share and return the original issue price to their holders on the termination date. The net asset value per unit must remain above the required $15 per unit threshold for distributions to be declared. Its investment manager is Quadravest Capital Management Inc.

TSX:DFN - Post by User

Dividend 15 Split Corp > New Press Release - Dividend 15 Split Corp. Announces TSX Acceptance of Normal Course Issuer Bid

<< Previous

Bullboard Posts

Next >>

Comment by AnEducatoron May 25, 2023 9:05am

131 Views

Post# 35463388

RE:RE:New Press Release - Dividend 15 Split Corp. Announces TSX Acceptance of Normal Course Issuer Bid

Not to worry. The fund will never dilute the NAV by purchasing units at higher than true value. Purchasing shares reduces their funds under management, which is completely antithetical to what the managers want to do because they make less money. They can only buy when units trade at a sufficient discouont to NAV.

The fund has an At-The-Market selling program in effect so expect them to continue to sell, not buy, shares on the market.

CrashLanding wrote: Hopefully this is not a prelude to suspending the dividends.

If the market price is a premium to NAV, it doesn't really make sense to buy back shares. If the dividend is going to be suspended, then it makes sense.

Is my thinking correct? Why don't they just purchase the pref shares and convert this into a normal ETF, instead of a split corp?

<< Previous

Bullboard Posts

Next >>

Mullen Group's Robust Case for Value, Part 1: Less-than-Truckload