Brompton Lifeco Split Corp T.LCS

Brompton updates UNIT NAV for LCS @ $15.01 to dec 29

[mouserman]

SO was high by a penny on my spreadsheet, but basically LCS was above the threshhold yesterday for paying to commons.   Still a buy here imo , as there really are few trading at discounts that are in that zone around  15$ threshhold for UNIT NAV.

[EdPaquette]

Not quite there yet.  Nav has to stay above 15 as per Brompton.

[mouserman]

Not so sure about that. LCS will receive 72 cents per share in divs for SLF today, and another 49 cents per share dividend  for GWO. For both those holdings the payable date is the 30th of December . Cash position will be much higher today, since there are only 4 stocks in the fund.

[Investability00]

So are you saying that the dividend payments from SLF, and GWO will add to the LCS NAV?

[EdPaquette]

Yes that's how splits work.  The nav is made of cash on hand plus the value of the underlying stock with ten dollars set aside for preferreds. 

[Investability00]

Thank you now I am sure of that, I guess the unit NAV for LCS will get a boost. Feb. is looking good for capital gain and payout of distributions, if the markets hold up!

[navgod]

I believe the important date for the dividends is the ex dividend date which was Nov 22 for SLF and Dec 1 for GWO. Payment date effects cash position but not NAV.

[mouserman]

cash position is part of the nav  

[navgod]

As soon as SLF, as an example, goes ex dividend the dividend becomes an account receivable for LCS and  is included in its NAV btw the trade price should be reduced by the dividend amount at the same time. When the divdend payment is actually made the account receivable goes to zero and cash is increased by the amount of the dividend with no impact on NAV. Ask the manager when the impact of

[mouserman]

 I have watched TD take the distribution for commons shares of DGS off on ex dividend date, and every other split fund common i follow. However i have NEVER seen them add on a collected dividend on ex dividend date, as many of those collected dividends from their respective holdings dont have ex divvy date as the payable date. AND they are paid quarterly.  Will see how close my NAV