Dividend 15 Split Corp T.DFN

Yes way

[EdPaquette]

March 13, 2020 BK nav was $16.45.  TSX SYMBOLS: BK BK.PR.A

Distribution Details

Preferred Share (BK.PR.A)

Ex-Dividend Date:

Record Date:

Payable Date:

Investor Relations: 1-877-478-2372 Local: 416-304-4443 www.canadianbanc.com [e-mail]

March 31, 2020

April 9, 2020

Since the latter part of February 2020, financial markets have been extremely volatile in response to the

developing COVID-19 pandemic and equity markets in particular have experienced significant declines.

The investment portfolio of the Company has been subject to these market fluctuations and the net assets

of the Company have been materially negatively impacted. The net asset value per unit of the Company

as at March 20, 2020 was $14.12. No regular monthly distributions will be paid on the Class A Shares in

any month as long as the net asset value per unit is equal to or less than $15.00. The Company’s

investment portfolio may continue to experience significant volatility as the situation evolves.

The Company invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal,

Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova

Scotia, Toronto-Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in

weight but may vary at any time. To generate additional returns above the dividend income earned on the

portfolio, The Company engages in a selective covered call writing program.

$0.04167

March 30, 2020

CANADIAN BANC CORP.

Monthly Dividend Declaration for Preferred Share

Toronto, Ontario - March 23, 2020 / Globe NewsWire: Canadian Banc Corp. (The "Company") declares its

monthly distribution of $0.04167 for each Preferred share. Distributions are payable April 9, 2020 to

shareholders on record as at March 31, 2020.

Preferred shareholders will receive prime plus 1.50% with a minimum rate of 5.00%.

Since inception Class A shareholders have received a total of $15.68 per share and Preferred shareholders

have received a total of $7.83 per share inclusive of this distribution, for a combined total of $23.51.

PRESS RELEASE

[AnEducator]

BK at the height of the COVID panic was an exceptional circumstance, and I was not too surprised when they did not pay the dividend. The markets were plunging, and the manager knew full well a dividend declaration would not likely make a meaningful difference. A payment at that time would have also reduced the NAV with no lasting positive outcomes for the fund. Right now, everybody knows DFN'

[pjn0987654321]

I believe split funds sometimes overstate the NAV by a cent or two to make the payment if it's very close.  Nobody knows the NAV exactly except them. 

[EdPaquette]

Quadravest has a history of ignoring the 15th if things change.  I say the decision date is the day they give the news release.   January 2019 FFN is another time they used a late date.  Don't count your chickens. 

[flamingogold]

I agree, if I was manager here and it was within a few cents of the threshold it would be prudent to do whatever possible to pay the distribution. Missing a payout and the resulting outflow from the fund is detrimental and the money does not always come back especially now when zero risk daily money market funds are paying over 4% compared to almost nil for over a decade.

[CrashLanding]

How would there be an outflow from the fund?  The is an ETF, not a mutual fund.  Most people would just sell and possibly wait until it bottomed out before deciding whether to get back in.  It could affect future offerings though.

[flamingogold]

DFN has a decent payout history so many will hold and some that sold will come back. But, given the ludicrous premium, if this sees a couple of misses the premium could evaporate quickly leaving one with a capital loss that could easily wipe away a years worth of distributions. I like catching them going in the other direction.

[AnEducator]

In January of 2019, FFN declared a dividend so I don't understand your point. Obviously, if using a later date results in a dividend declaration, Quadravest has in numerous occasions gone with that instead. That is precisely my point - the default inclination is to pay the dividend whenever possible. I have found It is extremely rare for them not to do whatever they can to issue a dividend

[EdPaquette]

Yes ffn paid, but it was under 15 on the 15th.  Both of these examples cost me money directly.  In the case of BK, the nav was $1.45 above the threshold, so don't count your chickens.