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.

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Dividend 15 Split Corp > DFN (why are people still buying this?)

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Comment by AnEducatoron Jun 02, 2023 12:25pm

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Post# 35477111

RE:DFN (why are people still buying this?)

I can certainly appreciate the seductiveness of the yield, but only if it is sustainable. Until recently, the NAV of the fund has had plenty of downside cushion, but now, the NAV is hovering around the $15.00 threshold and that makes an ongoing distribution very tenuous.

Note that the fund was issued at $25 and has decayed to $15 over the years despite all of the offerings and market gains in that period. So why do people want to pay $7.20+ for a security whose true value is only $5.00? It's the premium that defies logic.