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Canadian Banc Corp T.BK

Alternate Symbol(s):  CNDCF | T.BK.PR.A

The Companys investment objectives are (i) to provide holders of Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate plus 0.75%, with a minimum annual rate of 5.0% and a maximum annual rate of 7.0% (ii) to provide holders of Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate plus 2.0%, with a minimum targeted annual rate of 5.0% and a maximum targeted annual rate of 10.0% and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012.


TSX:BK - Post by User

Post by deisman03on Dec 07, 2023 2:15am
278 Views
Post# 35772403

ZWC

ZWCSeeing as we're a bit off topic here, ZWC has been paying out .11 monthly and even during covid it paid out .10 monthly. 

I've been watching it drop since its last high, at a very similar proportion as BK. 

They are trading right on NAV, which is $16.58 or very close to it, give or take .10. 

This ETF has a much larger basket of dividend paying stocks, including the six Canadian banks in BK. 

They run a very similar type of investment vehicle but their ROC is a bit higher from what I can figure out.

The return at this point is close to 8%, not quite as high as BK and they pay the dividends monthly. 

I'm not advising anyone to dump BK and pick up ZWC but it does have the advantage of playing covered calls without being a "split fund" which makes for quite a bit of volatility, which can be played to good advantage, once the investor learns how to pick the swings. 

From looking at the chart, if an investor chooses to play the swings, rather than sit back and collect the dividends, which aren't bad at all, I could see a possible 35-50% return without a lot of effort. 

GLTA the good folks here. 
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