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Bullboard - Stock Discussion Forum Dundee Corporation T.DC.P.B


Primary Symbol: T.DC.A Alternate Symbol(s):  T.DC.P.D | DNDEF | DNDPF | DDEJF

Dundee Corp is a public Canadian independent holding company. Through its operating subsidiaries, Dundee is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

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Dundee Corporation > Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1
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Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1

valueinvestor89 (17) | August 03, 2022 02:25 pm

I've started to buy the series 3 pref recently. i don't know if this is as commonly known but this is the highest yielding variable preffered dividend on the TSX

The Series 3 pref dividend is based on par value ($25) x (4.1% spread + the 3 month T-bill). The three month t-bill is 2.6% today and going up with every interest rate increase which is expected to be 3.3% on the low end. 

That makes the overal dividend to 6.7%-7.5% on the $25 par = $1.7-1.87 annual dividend. Based on today's price of $18.5 this is equal to 9-10% actual dividend on the purchase price. 

With Dundee Corp not holding any corporate debt, a large cash balance and public securities I think this makes the prefs very attractive. 

Today I think the series 3 pref is a much better investment than the series 2 who pays a 7% dividend on today's prices. There is also a free option to switch in 2024 from the series 3 (DC.PR.D) to the series 2 (DC.PR.B) once the series 2 dividend gets reset (based on the 5 year goc + 4.1%). 

Not a bad place to park money in an uncertain market in my opinion. let me know what you think!

RE:Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1

Macpoor (87) | August 03, 2022 09:12 pm

I love to see  managment  cut the  dividend for series 2 and 3 by at least 15 percent. That cut will bring up the DC.A to $2.00


Just do it so this peeg move higher))))))))))))))))))))))))))))



RE:RE:Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1

pierrelebel (352) | August 04, 2022 04:37 pm

The dividend cannot be cut.  Period.

Best DC could do is buy back the preferred shares (both B and D), reducing the total amount of dividends they would pay.

RE:RE:RE:Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1

valueinvestor89 (17) | August 04, 2022 04:54 pm

Agreed the dividend unlike the common shares of most companies is not discretionary. 


With the September  interest rate hike of the expected 50-75bps this will be yielding 10% while trading at a 25% discount to par.

good way to ride interest rates and inflation while parking some cash in my opinion.
 

Wrt to the common shares and results this month I'll be interested in seeing if Dundee corp wrote up the investment in taurx. The jr miners took a big hit by June 30 and have since recovered a bit. 

RE:RE:RE:Dundee Corp Series 3 Pref Dividends (DC.PR.D) - Yielding 9-1

Macpoor (87) | August 05, 2022 08:09 am

That sucks!