Bullboard - Stock Discussion Forum North American Financial 15 Split Corp T.FFN

Alternate Symbol(s): FNCSF

North American Financial 15 Split Corp. is a Canada-based mutual fund corporation, which invests in a portfolio of over 15 financial services companies. It offers two types of shares, such as Preferred Shares and Class A Shares. Its investment objectives with respect to preferred shares are to provide holders of preferred shares with cumulative preferential monthly cash dividends in the amount... see more

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North American Financial 15 Split Corp > Split share payout ratios

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Post by kurtwalter on Nov 08, 2024 1:39pm

Split share payout ratios

I have been worried for some time about the payout ratios of split share capital shares as the payout ratios are quite opaque. In the passive income investment community there has been a bit of a buzz recently about new covered call ETFs which seem to have become quite popular, but i suppose split share capital shares are basically leveraged covered call ETFs as well. Should I just give up my worries and accept that covered call premiums will cover the high yields of FFN, LFE and such?

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Comment by Inglewood on Nov 08, 2024 1:45pm

If we are lucky, the call premiums + dividends from the holdings will cover the distributions owed to the Pref shares. The only way the capital share distributions will be covered is thru material capital gains.

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North American Financial 15 Split Corp