Dividend Growth Split Corp T.DGS

Zero

[AnEducator]

Theoretically, the capital shares could certainly be worth zero if there was a sufficient decline in the markets.. This does not mean the capital shares would trade at zero, obviously, as they would retain some optionality for some possible future appreciation.

However, it is almost unthinkable for the preferred shares to go to zero as the entire portfolio would have to be worthless. This could happen if the company was continually forced to liquidate parts of the portfolio in order to fund the preferred distributions and pay whatever management fees are owing until all holdings are entirely liquidated and nothing is left.

[flamingogold]

Extreme scenario. Look to the split OSP as a real life example. When cruded crashed during covid, the NAV on OSP went to 0 but the commons never did. They traded around 40¢. Crude has come back but OSP rarely ever pays a distribution. For the common share price on DGS, which is the most diversified split there is and has a far, far better track record of paying than OSP, to go to zero we

[Mmb060]

Would need the mkt to drop 20%+ from this point..  I would say possible,  but unlikely !!!