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 > DFN (why are people still buying this?)

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Comment by mousermanon Jun 02, 2023 1:13pm

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Post# 35477236

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

Lots of shares out helps liquidity, but what is happening with many of these split funds, is the ATM, which allows the fund to create shares to sell big blocks to investors at the market price that day . Even if there really isnt that much REAL interest on the market depth.
So it is understandable how DFN gets to a 50% premium, but that CERTAINLY doesnt make it a buy.
LCS is a buy , trading over a dollar higher in UNIT NAV than DFN, no premium and actually on sale, being at a discount to NAV. As far as yield goes, LCS still over a 15% yield, DFN is at about 16.5%.
It all comes down to value, when these get close to the 15$ threshhold. I dont buy at a huge premium when they are underwater or near the threshhold. BUT that certainly doesnt seem to stop the risk-on crowd, that sees only blue skies ahead.

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