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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 May 31, 2023 10:51am
159 Views
Post# 35472453

NAV

NAVCurrently hovering around $14.41. Premium is now a bloated $0.74. I simply cannot understand the logic of people willing to pay so much excess premiums on a fund that is getting close to 5% underwater. 

The dividends are clearly unsustainable since the fund does not even collect enough to pay preferred shareholders, let alone the management fees and capital shareholders. Any payments are a return of capital which further erodes the NAV. 

Sure, there may be some random payments in the future, but how does that justify overpaying by so much for such a fund?
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