Dividend 15 Split Corp T.DFN

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

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 AnEducatoron Jun 26, 2024 3:47pm

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Post# 36107647

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

Hi Commenting,

Just to make things clear, the units of both DFN and FTN were both issued for $25.00. Out this, $15.00 was allocated towards the capital shares and $10.00 was allocated towards the preferred shares. So with the current NAV being ~$14.75, the capital shares are only worth ~$4.75, well below the $15.00 issue price.

As for FTN, they did a huge consolidation a few years ago as MM noted, which results in a comparable pre-consolidation value of FTN being well south of $4.00.

Please note that early investors in these entities have accumulated significant tax-efficient dividends in all these years, so the investments may have worked out just fine for many of them.

Commenting wrote: So, on the basis of that haircut, the effective issued-NAV is, if I understand correctly, $17.88, not $15.00. As of yesterday's close, you (Mm) had FTN's NAV at $17.91, a smidgen over this split's effective issued-NAV, though, it distributions safety margin was 58%.

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