RE:RE:RE:RE:BROMPTON reports DGS unit nav @ $15.40 to Feb 1That's correct Inglewood.
1. The dividend should always be subtracted from the NAV on the ex-dividend date because the shares are worth less to new buyers than they were the day before as they are no longer entitled to the dividend.
2. The accrued dividends on the preferreds are added to the NAV of the preferred shares every week and thus subtracted from the NAV of the capital shares.
As of February 1st, there was a cushion of approximately $0.20 above the payment threshold.
The only caveat I would add is that when the ex-dividend date lands on a Wednesday or Thursday, Brompton often inexplicably fails to account for the ex-dividend status of the shares until the following week. It's either a glitch or total carelessness on their part.
Inglewood wrote: Thanks AnEducator.. to confirm, are you saying that the $5.30 value for the capital shares already reflects (1) the subtraction of the 10 cent January dividend for the capital shares, and (2) the subtraction of the accrued 10 cents of preferred divdends?
If so, as of Feb 1, there was a 20 cent (5.30) cushion before payment status (5.10) is breached?
Are declared dividends subtracted on the ex-dividend date for the NAV updates?