Dividend Select 15 Corp T.DS

Under the radar income fund...

[mouserman]

DS seems to have very little following, or volume for that matter. Seems the iffy split funds are more in vogue... more gambling /trading  there  than income.....
DS will make a slow steady climb up and as that happens the yield will increase, and there is never a complete cut in distributions since  they float according to the share price.
And there are NO preferred shares attached to share the gains....
Trading under NAV again today as the portfolio makes more gains today.

[wolverine99]

Mouserman, you are correct, for the moment it looks you and I have this board to ourselves, how civilized. Got into this one last week, LBS & BK yesterday ,balance to FTN who I also have at a high entry point so sticking with it, hoping Feb. Divvy is back on!

[mouserman]

FTN definitely safe at this point, likely around UNIT NAV of 15.20 or so today. However with over 50% premium to NAV it is highly overvalued. I suspect shorts having to cover , or being forced to cover. FFN making a big move today as their NAV now over the threshhold as well. They have a heavier wieghting in US financials as compared to FTN.. and those stocks have a banner day today.

[wolverine99]

Historically FTN has had a pretty good track record of Divvy payouts, one suspension of 18 months many years ago is the only real bad blemish. For whatever reason the appetite to pay the big premium over NAV seems to be more of the norm than exception. Great while its there, ride the roller coaster!!!

[mouserman]

My problem with FTN is actually the high yield.... it makes sustaining the distribution to the common shares more difficult. Particularly if we see a sideways market for banks in North America in the coming months. Today it looks like nothing but blue sky.... but if the last 3 months of 2018 are any indication.. we could easily see some stormy skies ahead again. The NAV today for FTN likely right

[wolverine99]

So structurally, how can the common NAV improve w/o an increase in the market price for FTN, is this an anomaly due to US holdings, leverage, quick rise in FTN after a selloff, other Split Shares seem to have a better NAV/Yield balance?

[mouserman]

The only explanation  i have for a split fund common share to be trading with over a 50% premium to NAV, ( barely above the threshhold for paying to common shares ) , is that there was a big short position that was forced to be covered , either by a shortage of shares out there, or a margin call. There is no LOGICAL explanation outside of that. Over exuberant buyers?  I know that traders

[wolverine99]

Well for the moment lets just enjoy the ride back up on just about everything. Having bought into DS, BK LBS and EIT, I can live with the volatility of FTN for now. Many thanks for your insights.

[SNOOSER]

Appreciate your analysis - starting to accumlate DS now for my income portfolio. I think I'll buy DS & EIT.UN for the high income/risk % portion. The rest I have are all the Div Aristocrats, a good solid base. Look forward to the higher income with these. Again, your hard work is most appreciated.