Dividend Growth Split Corp T.DGS

BROMPTON reports DGS unit nav @ $15.40 to Feb 1

[mouserman]

Brompton also valued the common shares @ $5.30 so only accounting for 10 cent  dist to commons if i am reading this right. Preferred share dist, are prorated and not accounted for until the next update i do believe.

[mouserman]

Actually i think i have that backwards after seeing LBS values from Brompton. DGS valuing the commons @ $5.30 is only taking off the prorated preferreds to this point. Just happened to b e 10 cents , which is also the amount of the dist .to commons.

[Inglewood]

Hi MM... agree with your second take. The Preferreds are valued at 10.10, so that extra 10 cents must come from the commons, pro-rated... So in other words, my understanding is that brompton is assigning a value of $5.40 for the commons, before payment of the January divvy and any pro-ration.. After taking into account the January div, we are sitting at a value of $5.30 for the commons, and will

[mouserman]

February a short month, but looks to me like the calc date will Feb 22 , as that is the 2nd last thursday of the month.

[AnEducator]

Brompton will likely use the February 15th closing NAV for dividend determination since a declaration on Friday, February 23rd would be too late according to TSX regulations. The only way to use the Thursday, February 22nd closing NAV would be to declare on that same evening after the close. It's certainly possible, but I find it unlikey.

[AnEducator]

Hey MM and Inglewood, Brompton is valuing the preferred shares at $10.10 ($10 nominal value plus $0.10 accrued dividends to date) and the capital shares at a value of $5.30 as of yesterday's close. So the total unit value of $15.40 accounted for the ex-dividend status of the capital shares. Only declared dividends are subtracted from the NAV on the ex-dividend date, so while capital share

[Inglewood]

Thanks AnEducator.. to confirm, are you saying that the $5.30 value for the capital shares already reflects (1) the subtraction of the 10 cent January dividend for the capital shares, and (2) the subtraction of the accrued 10 cents of preferred divdends?  If so, as of Feb 1, there was a 20 cent (5.30) cushion before payment status (5.10) is breached?  Are declared dividends subtracted

[mouserman]

No that NAV for the commons does NOT reflect the payment to commons, as i looked at both LCS and LBS, and i am positive Brompton uses the  same method for all them.  There is no way i was out by 20 cents on the DGS  spreadsheet and certainly LBS looks as tho it only used the prorated dist to preferred to deduct from the UNIT NAV. But you can check that for yourself.

[mouserman]

OOps so  sorry , i did not look closely at LBS, and indeed Brompton did take the 10 cents dist. off  and then deducted the prorated pref, for the NAV of the commons. So AnEducator is correct on DGS in that distributions to commons are ALREADY taken off before factoring in the prorated preferred portion , which they deduct to get the NAV for the commons, on the Brompton website. 

[AnEducator]

That's correct Inglewood. 1. The dividend should always be subtracted from the NAV on the ex-dividend date because the shares are worth less to new buyers than they were the day before as they are no longer entitled to the dividend.  2. The accrued dividends on the preferreds are added to the NAV of the preferred shares every week and thus subtracted from the NAV of the capital shares.&