Dividend Growth Split Corp T.DGS

Cheap premium under 7%

[flamingogold]

Very reasonable for a split that has paid every month this year and will again this month with some NAV cushion for further market weakness. Meanwhile, DFN, DF and LFE are out of the money and will require further record indices to keep paying.

[marketsense]

In total agreement.  Been saying the same thing.  For a fund that is diversified and has active managers, it has proved to be a reliable payer and been able to keep on top of its NAV.  That should justify having a decent premium IMO and should keep investors more in than out.

[NoShoesNoShirt]

Look at the 7% premium as cream to be skimmed off by the shorters. When the market is someday on its way down, they short this and make 7% in 2 weeks.  After what happened last summer, I'll never again hold splits at more than 3% premium. 

[flamingogold]

The strategy that worked for me was to buy it when it are unloved, thrown to the dogs and sinking. I did that first during the financial crash. That was my entry point into the splits. With rates in the ditch I employed a carry cost strategy and bought DGS. I was bascially given free money to make money. There was the capital gain and then the distribution on top. Unfortunately, the carry cost