Bullboard - Stock Discussion Forum Dividend Growth Split Corp T.DGS

Alternate Symbol(s): DDWWF | T.DGS.PR.A

The Funds investment objectives are to provide holders of Preferred shares with fixed, cumulative, preferential, quarterly cash distributions and to return the original issue price of 10.00 per Preferred share to shareholders at maturity; and to provide holders of Class A shares with regular monthly cash distributions, targeted to be at least 0.10 per Class A share, and the opportunity for... see more

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TSX:DGS - Post Discussion

Dividend Growth Split Corp > In at 6.40

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Post by epoxypatch on Jun 01, 2023 6:19pm

In at 6.40

Is there any hope for me? I can average down, but it seems the sentiment on this fund is really down. Should I bail or wait it out?

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Comment by AnEducator on Jun 01, 2023 7:20pm

The true value of DGS is around $4.42, and yet the shares are trading at $5.18 despite not paying a dividend. In my opinion, the risk/reward metrics are terrible because the fund does not earn enough in dividends from its portfolio to cover those paid to preferred shareholders,let alone the management fees. There is always hope - if the underlying portfolio goes up by 5% or more, DGS will ...more

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Comment by Intellectual on Jun 01, 2023 11:14pm

If DGS somehow, miraculously, is able to sustain a dividend 50% of the time, it would still amount to a mere 10% dividend on a price of $6.00. Why on Earth would anyone assume so much risk just to earn such paltry returns? I can totally understand buying at a discount to NAV in this scenario, but paying such ridiculous premiums seems like utter lunacy. At current premiums, this fund resembles a ...more

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Dividend Growth Split Corp