Dividend 15 Split Corp T.DFN

DFN question

[mrwd60]

A friend of mine told me about DFN and said it's a rock solid investment that will pay a good return of 14% for years. This seems too good to be true so I'm asking what anyone else thinks of DFN as a long term investment, and how does this maintain these high dividend payouts every month when most regular stocks return maybe 1% to 5% annually? I looked on the Quadravest website and so I understand the split share structure but it's vague on how the returns are generated.

[EdPaquette]

Class a shares get what's been left on the table by the preferreds.   But they get the security of continuing payouts no matter where the market goes. We need to be nimble, they can look away. 

[mouserman]

Well , capital gains are what pay the commons shares, and dividends collected from the stocks in the portfolio basically are enough to pay the preferreds. HOWEVER, DFN is likely the biggest split fund out there by market cap. And they have done many offerings  ( raise of capital to invest more $$ into the same names ) near market highs, and these help to maintain the payouts. DFN has a very

[Kylemcc10]

I was a skeptic as well but their track record of paying speaks for itself