Dividend 15 Split Corp T.DFN

Alternate Symbol(s): DFNPF | T.DFN.PR.A | DVSPF

Financial Services Asset Management

Dividend 15 Split Corp. is a Canada-based mutual fund, which invests primarily in a portfolio of dividend yielding common shares, which includes approximately 15 Canadian companies. It offers two types of shares, including Preferred shares and Class A shares. Its investment objectives with respect to Preferred Shares are to provide holders with fixed cumulative preferential monthly cash dividends in an amount of $0.04583 per Preferred share to yield 5.5% per annum on the $10 repayment amount and to return the $10 repayment amount to their holders on the termination date. Its investment objectives with respect to Class A Shares are to provide holders with regular monthly cash distribution targeted to be $0.10 per Class A share and return the original issue price to their holders on the termination date. The net asset value per unit must remain above the required $15 per unit threshold for distributions to be declared. Its investment manager is Quadravest Capital Management Inc.

TSX:DFN - Post by User

Dividend 15 Split Corp > DFN unit nav to June 21 = approx: $14.73

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Comment by mousermanon Jun 26, 2024 12:31pm

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Post# 36107206

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:DFN unit nav to June 21 = approx: $14.73

Yes the UNIT NAV is the combination of the value of holdings plus cash. The Preferred shares always carry a value of 10$ when figuring the UNIT NAV, even if they trade over or under that amount. Preferred shares get paid no matter where the unit nav is until the split fund goes under, or changes when it consolidates shares
SO the remainder goes to the common shares, who take the risk or benefit of the UNIT NAV trading under or over the $15 threshhold for paying to commons.
After the consolidation FTN commons lost 60% of their original 15 $ value. SO over time they have lost a lot of value. FFN did something similar...
I suspect DFN may do a consolidation when the preferred reset is implemented. Especially if they are a dollar or more underwater by then.
The value of the FTN commons on ex divvy date ( june 28th) will be $10.20 less than the UNIT NAV.
Preffered shares get 7.708 cents distribution monthly and commons get 12.57 cents , actually a bit more than 20 cents.
Hope that helps..

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