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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 Jun 08, 2023 4:27pm
181 Views
Post# 35487235

NAV June 8

NAV June 8~$14.64. Closing premium on capital shares: ~$0.55.

Ten trading days left for the fund to rise by ~3.14% in order to reach the $15.10 target required for a resumption of distributions. The energy sector is not helping out as expected after Saudi Arabia's decesion to cut production. Progress in U.S./Iran negotiations has potentially substantial negative implications for the price of oil. 

I simply cannot understand why anyone would be so enamoured with this stock. The yield is totally uninspiring even if payments are achievable 50% of the time, which is debatable, and any capital gains are adversely impacted by guaranteed payments to preferreds and ongoing management fees. Gains are also further limited because of the inflated premium. 
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