Financial 15 Split Corp T.FTN

Analogguy

[CountryBoy69]

This post is just a reservation about FTN but the poster l addressed it to, asked for anything l felt was good and l am returning the favour as he put me on to ENCC.Yes this is a split share , frightening to some but you did say you were up for it , like fluctuations in the oil price.The Dividend based on yesterday's close is 16.34% , not too shabby. If you don't know splits this one is broken down in two parts ,the preferred issue at $10 and the commons issued at $5 The preferred get their divs regardless but the commons must be above $5 to receive that juicy div monthly .FTN is covered at this time by over 40% and since their holdings are all Financial , then no worries. The only thing is l wish their US exposure was somewhat less as CDN banks are both superior and better performers and div payers. I put my money where my mouth is and in the 8 and a half months l have owned this it represents about 50% of my portfolio. And to kick it off my ACB since l reinvest all divs is now $7.74 , return so far , over 19% and l truly believe that the Banks time has come and their stocks and FTN are only going higher. Just my take , you asked and you received.Glad to exchange the favour you did me.

[ANALOG GUY]

Thank You for the detailed post  never owned a split share fund 19% yield in 9 months is truly stunning  so they run a covered call strategy and collect dividends from the 15 banks in the fund, pay the Preferred guys their dividend and the rest goes to the common shareholders the shares must have dipped under $5 during Covid as they stopped paying the dividend  if you

[Intellectual]

The company writes options on a tiny portion of their portfolio. Last I remember, it was less than 1% - essentially negligible.  The leverage FTN and other split funds provide comes from the fact that all the capital appreciation of the units goes to the capital shareholders because the NAV of the  preferred shares can never exceed $10.00. Assume the NAV of the fund rose from $18.00 to

[CountryBoy69]

Analog , one thing to add , yes during COVID they did miss a couple , but that was of course under extremely dire circumstances and of course many other stocks , CDN banks excepted cut their divs as well. Like you l Splits are new for me but one extra level of protection are the posts by Mouserman a few times a week, His derailed numbers regarding the Common share Nav is far superior to that given

[ANALOG GUY]

Country Boy Just doing some DD Very surprised that 96% of the dividend is "Eligible Dividends " being that they hold US banks (I REALLY like Eligible Dividends)  Also, I see 0 Return Of Capital  And yes, they write VERY few options as "Intellectual " said, so they are not limiting the upside of the shares  so that's 3 Positives in my book 

[dannodotcom]

I could be wrong, wouldn't be the first time, but I believe the xdiv date is July 28, not today the 27th.  But people please check, cus like I said, I could be wrong.

[ANALOG GUY]

You are not wrong my friend  the retired guy who doesn't know what day it is ...... is wrong!