Dividend 15 Split Corp T.DFN

New Press Release - Dividend 15 Split Corp. Announces TSX Acceptance of Normal Course Issuer Bid

TORONTO, May 25, 2023 (GLOBE NEWSWIRE) -- Dividend 15 Split Corp. (the “Company”) announced today that the Toronto Stock Exchange (the “TSX”) has accepted its notice of intention to make a Normal Course Issuer Bid (the “NCIB”) to purchase its Preferred Shares and Class A Shares through the...read article.

[CrashLanding]

Hopefully this is not a prelude to suspending the dividends.  If the market price is a premium to NAV, it doesn't really make sense to buy back shares.  If the dividend is going to be suspended, then it makes sense. Is my thinking correct?  Why don't they just purchase the pref shares and convert this into a normal ETF, instead of a split corp?

[AnEducator]

Not to worry. The fund will never dilute the NAV by purchasing units at higher than true value. Purchasing shares reduces their funds under management, which is completely antithetical to what the managers want to do because they make less money. They can only buy when units trade at a sufficient discouont to NAV. The fund has an At-The-Market selling program in effect so expect them to continue