Canadian Life Companies Split Corp T.LFE

Alternate Symbol(s): CLSPF | T.LFE.PR.B

The Companys investment objectives are (i) to provide holders of Preferred Shares with fixed cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price (ii) to provide holders of Class A Shares with regular monthly cash distributions targeted to be $0.10 per Class A Share to yield 8.0% per annum on the original issue price and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012. The Company will invest primarily in a portfolio of common shares of Proceeds: (the ``Portfolio) which will include the following publicly traded Canadian life insurance companies (the ``Portfolio Companies), each of whose shares will generally represent no less than 10% and no more than 30% of the net asset value (``Net Asset Value) of the Company: Great-West Lifeco Inc.

TSX:LFE - Post by User

Canadian Life Companies Split Corp > LFE unit nav to July 30 = approx: $15.04 before dist.

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Comment by mousermanon Jul 31, 2024 10:08am

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Post# 36156072

RE:RE:LFE unit nav to July 30 = approx: $15.04 before dist.

BOMAS wrote: MOUSERMAN (or any other reader,)
Thanks for the update.

Also based on the LFE Jul17-2024 press release (link below) it looks like LFE is paying a .10/share dividend for July?

https://stockhouse.com/news/press-releases/2024/07/17/canadian-life-companies-split-corp-declares-class-a-preferred-share-dividend

Can you confirm?

I just was not looking at LFE very carefully this July and I was assuming LFE would not pay a dividend in July. So looks LFE was over the $5 threshold at time of dividend payout calculation. Or LFE not require the $5/share threshold level to pay out a dividend?

Looking at Quadravest LFE fund feature page it just says:

Class A Shares:

(i) to provide holders of the Class A Shares with monthly cash dividends as the directors of the Company may from time to time determine, and;
(ii) on or about December 1, 2030 (subject to further 6 year extensions thereafter) to pay the holders of Class A Shares such amounts as remain after paying the holders of the Preferred shares the amounts owing to them.

Above cut and pastet does not mention a $5 minimum share price for LFE for LFE to pay a dividend. and it sounds like it is at the discression of the directors??

Anyway if someone can confirm/comment on how LFE dividend payout works I would appreciate hearing what you have to say.

Thanks in advance Bomas

Yes Quadravest used a later date for LFE (JULY 16th) , and that gave them the UNIT NAV above 15$ that triggers a payment to Common shares for the month of JULY. They have done that as well with DFN on more than one occasion, but i was surprised they did it for LFE.
Normally the calculation date is on or near the 15th of every month, and that is when they determine which split fund commons get paid a distribution. The preferreds always get paid unless the split fund is going under..
Currently LFE commons are valued at about $4.92 with the UNIT NAV at $14.92 after distributions are accounted for, and yesterday was ex divvy date.
So the UNIT NAV needs to gain 8 more pennies before the middle of the month to pay again for AUG.
IF you are buying today, you would NOT get a distribution for JULY.

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