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Financial 15 Split Corp T.FTN

Alternate Symbol(s):  T.FTN.PR.A | FNNCF

Financial 15 Split Corp. is a mutual fund, which invests in a portfolio consisting of over 15 financial services companies. The Company offers two types of shares, such as Preferred Shares and Class A Shares. Its investment objectives with respect to Preferred Shares are to provide holders of Preferred Shares with cumulative preferential monthly cash dividends in an amount of over 6.75% annually and to pay the holders of the Preferred Shares approximately $10 per Preferred Share on or about the termination date. Its investment objectives with respect to Class A Shares are to provide holders of Class A Shares with regular monthly cash distributions and to permit holders to participate in all growth in the net asset value of the Company over $15 per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying over $10 per Preferred Share. The Company’s investment manager is Quadravest Capital Management Inc.


TSX:FTN - Post by User

Comment by Experiencedon Apr 03, 2024 11:02pm
143 Views
Post# 35969503

RE:RE:RE:18% dividend?

RE:RE:RE:18% dividend?itsalie.....split share companies are not regular dividend paying stocks.  There are periods where they pay no dividends.  I suggest as part of your DD you look at the dividend history of the splits you interested in to get a complete picture.  As well look at some of the long term charts.

In simple terms, the dividends paid out to the commons for most splits comes out of capital gains and is a return on capital.  This works fine as long as the market is going up.  Once the market flattens out and more importantly, goes down, the splits get hammered and you really don't want to be the last one finding a seat when the music stops.

I still hold FTN but as I mentioned earlier have reduced my holding by 50% as I have concerns about the overall market going forward and expect to reload at a much lower SP than I sold for at some point in the future.
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