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Dividend 15 Split Corp II T.DF

Alternate Symbol(s):  T.DF.PR.A | DVDDF

Dividend 15 Split Corp. II is a mutual fund. The Company invests in a portfolio of 15 dividend-yielding, Canadian companies. It offers two types of shares, a Class A and Preferred. The investment objectives with respect to the Preferred shares are to provide holders of the Preferred shares with fixed, cumulative preferential monthly cash dividends in the amount of $0.04792 per Preferred share to yield 5.75% on the $10 repayment amount and to pay the holders $10 per Preferred share. The investment objectives with respect to the Class A shares are to provide holders of the Class A shares with regular monthly cash dividends targeted to be $0.10 per Class A share. The net asset value per unit must be above the required $15 per unit threshold in order for monthly dividends to be declared, and On or about the termination date, to pay the holders the original issue price ($15) of the Class A shares. The investment manager of the Company is Quadravest Capital Management Inc.


TSX:DF - Post by User

Post by mkqtraderon Aug 20, 2024 2:37pm
96 Views
Post# 36188414

Considerations after Quadravest mid-month update

Considerations after Quadravest mid-month updateSo, after Quadravest published its update on DF's NAV, I am trying to reason on a few things:
First, my calculations without the dividends received by the fund was about 0.45 cents lower than the declared value, which to me represents a hit in the center of the bullseye; however, I am writing not to brag (also because other times I have been very far from it) but to try to understand what happens with the dividends amounts received by the fund. I know very well that too many of the parameters we are given are highly rounded:
- the cash amount itself can be anywhere between half point lower to half a point greater than what is reported
- the weight of each holding is rounded to the first decimal, which can produce an non-realistic number of shares for each holding
- the number of outstanding fund shares gets calculated using the declared total fund value at month end and the rounded NAV, which can produce variations going either up or down every 15 days 

This said, I am not surprised when I see almost half-million dollar dividends disappear: they may really have been plugging those holes created by those rounded numbers released by Quadravest.

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