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Bullboard - Stock Discussion Forum Canadian Life Companies Split Corp T.LFE

Alternate Symbol(s):  CLSPF | T.LFE.PR.B

The Companys investment objectives are (i) to provide holders of Preferred Shares with fixed cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price (ii) to provide holders of Class A Shares with regular monthly cash distributions targeted to be $0.10 per Class A Share to yield 8.0% per annum on the... see more

TSX:LFE - Post Discussion

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Post by kurtwalter on Jan 06, 2025 11:39am

LFE NAV

So let's see if I understand this correctly? Quadravest gives investors 10% bonus in extra shores, and as a result of the increased share count the NAV goes down?
Comment by freeparking on Jan 06, 2025 1:07pm
Thats generally how share dilution works. Assets held stay the same value but company creates/issues more shares. Thereby decreasing per share "whatever" ratio you want to calculate. However, on the upside this share price pull back would increase the distribution yield % as the distribution amount remains unchanged.
Comment by mouserman on Jan 08, 2025 9:33am
It does also help to create more liquidity with a bigger share count.
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