Opinions Peter Hodson
Dividend 15 Split Corp.DFN.TOCOMMENTJun 21, 2013
Stock price when the opinion was issued
As of Aug 12, 2026. Market Open.
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Takes 15 stocks, splits them into preferred and common, and here you're left with the common shares. The preferred shares get guaranteed dividends, and the common shares get everything else. Coming to more of a historical long-term level, which is stable. People buy this for the dividend, not for capital gains.
Overall, looks like a stable investment. He wouldn't worry about the dividend. He can't recommend a buy on it yet, as he'd have to do some more research to fully understand it as well as the dip in the chart.
They take a basket and they make a common shareholder that they give double dividend by leveraging and a preferred shareholder that they pay 5-5.5%. Sounds great but the basket of stocks has to go up significantly in a rapid way if not you lose money. This is the opposite to buy and hold.
This company holds 15 high dividend paying stocks on the TSX. The way it is structured is that they have a preferred share and a common share and the common share only gets paid if the preferred share has been paid and if there is a certain NAV. Very nice dividend, but you do have that NAV test, so if the banks were to collapse and the NAV declined, the dividend could be in jeopardy even if the banks and other companies were still paying dividends so it’s not quite as clean as it looks, but it is not bad. He would rather just own the underlying stocks. 11.73% yield.