RE:RE:RE:RE:RE:RE:RE:Markets bouncing back More than 20 years ago, over about 3 years, I turned $200,000 into $4,000,000 using leverage and cover calls on income trusts. And then one day allmost all of my equity evaporated. That was when the government decided to change the rules regarding income trusts. It was sickening. I have since recovered and have become a much more conservative investor and do not use margin at all. The point being is that I know from experience that it is possible to obtain very high dividend rates. It was my hope that there were clever managers at Quadravest that were doing just that. The fact that they supplement the cash pool by selling more shares is cheating and it's hard to believe that it is actually legal.
I'm definitely looking to exit from this questionable investment. But I think it still has legs. Interest rates have peaked and when they actually start to drop, the oversold financials will recover and regardless of whether DFN issues more shares or not, the NAV will cllimb.
Quadravest seems determined to find an excuse to pay the dividend. I don't know if this is to thwart the short sellers or because they showcase the fund. Regardless, they seem determined and I'm happy to collect but am loooking to get out. When I first started buying DFN my exit price was $7. Now I'm thinking $6.