Financial 15 Split Corp T.FTN

18% dividend?

[itsalie]

Is that a misprint? 

Forward Dividend & Yield

1.51 (18.53%)

[NoShoesNoShirt]

Yes it pays 18%

[itsalie]

wow.. how long have you been following it.. I just heard about it today so will do some reading.. but who doesn't like 18%.. feels like there is a catch I don't know about.. 

[NoShoesNoShirt]

Only 2 catches..... 1. There's little chance of major capital gains because growth is converted to dividends.  2. Dividend gets cut to zero if unit nav falls below 15.

[KozmoT]

LOL, that was me when I first heard about FTN ... did a bunch of research and for the life of me could not find much of a downside. Am making almost $1000/month in dividends and bought in at 70 cents lower than it currently trades. Damned if I know why more people aren't in these stocks...

[Experienced]

Kozmo - lol.....have you actually looked at a long term chart? These vehicles  are not long term investments,  They are to be played a short term investments.

[KozmoT]

Yes, the long term chart factored into my decision to buy this.  I go by the Buy Low Sell High motto ... apparently you do not. Best of luck to you.  Have YOU looked at the long term chart?

[mouserman]

Not a misprint , these split fund common shares  are highly leveraged, and FTN does not even have the highest yield. LFE, FFN and DF  ( currently paying) for instance would have a yeilds in excess of  24% if they kept on paying for an entire year. However when the UNIT NAV is above 15$ for a while and then the markets correct , if they drop under 15$ they dont pay , and the commons

[itsalie]

so do you guys trade in an out of a stock like this, are you up/down? I own lots of divvy stocks but this type of fund is entirely new to me.. I'll do some more dd and look at LFE, FFN and DF thanks!

[mouserman]

Trick is buying them before they start the move intense move  up as they begin to pay.However DF and LFE are not a bad gamble at a 7% discount and currently would pay at todays levels.  Market is showing a lot of fear right now, judging by how precious metals are doing and how discount -valued these split funds are.

[Experienced]

itsalie.....split share companies are not regular dividend paying stocks.  There are periods where they pay no dividends.  I suggest as part of your DD you look at the dividend history of the splits you interested in to get a complete picture.  As well look at some of the long term charts. In simple terms, the dividends paid out to the commons for most splits comes out of capital

[mouserman]

These are good investments as long as you time it right and keep an eye on them. Buying a boatload at the top of an overbought bull market is not good strategy longterm. Things are not as rosy as the govt  data suggests, but they do not care much about the poor  people, unless they are from another country. I am stll in FTN , but have reduced exposure to the banks after 5  US  

[NobleHouse]

Hello my Friend , l always find your posts interesting and informative and perhaps you are correct regarding many split funds and div suspensions but in the case of FTN , l believe you are being unfair  branding them with the same brush. In the last 4 years to the best of my knowledge they didn't pay for only 2 months back in the high panic of COVID.In that same time other companies not