Dividend 15 Split Corp T.DFN

Are we on the cusp...

[flamingogold]

of another waterfall moment? March 2020, DFN slowly started to decline before going over a cliff. It starts slow then happens fast. Picking a bottom is impossible but what I can say is that $8+ seems pretty rich right now.

[gribbs2]

why is 8$+ pretty rich ?  what do you see?

[flamingogold]

By the numbers, the stock is trading normally inline with the NAV. But, it did so as well 2 years ago just as covid was hitting. DFN is a solid fund along with EIT. In my years of following these stocks, I have found that during the onset of a crises or major correction they are the last dominoes to fall. Almost like Apple in tech, where that sector has been obliterated, Apple stands tall among

[Golferman]

I'm in EIT as well.... it is trading at a good discount now to NAV

[Thoughtcrime]

If $8 is rich, what would you consider a good entry point for DFN? My current ACB is $8.11. What is a good entry point for EIT?

[EdPaquette]

Consider BK instead. Dividends are targeted to 15%, with way more buffer above $15 threshold. 

[Gongshow44]

Consider the one that is the best value.  If the NAV is greater than the price of the stock then you are buying value (DFN price and NAV are almost the same), if the NAV is lower than the price (BK) then you are overpaying.    Of course you need to consider how close the NAV Is to not paying a dividend.  DFN is till pretty safe at about $18.00 and BK is much more safe at $23+.&

[EdPaquette]

Dfn is locked into 10 cents per month dividend, but BK is 15% so in a growing market BK pays more and more. 18 cents right now.

[Gongshow44]

What happens to the BK dividend if the price drops?    Buying stocks for dividends is one thing, buying a stock because it has a current higher dividend is not the best way to pick stocks. 

[EdPaquette]

If the market dropped about 25% from here, which is possible, dfn would stop paying.  BK would pay 15% of it's reduced value, so maybe 14 cents per month. Take your pick.

[Thoughtcrime]

Good job not answering my question...let me try asking again. Hey Flamingogold, If $8 is rich, what would you consider a good entry point for DFN? My current ACB is $8.11. What is a good entry point for EIT?