Opinions Richard Croft
Dividend 15 Split Corp.DFN.TOCOMMENTAug 18, 2015
Richard CroftStock 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.
15 high dividend paying stocks. When thinking about buying any stock, you are buying it for growth on one hand and income on the other. A split corporation takes those 2 components and splits them apart. The growth is called a Capital Share and the dividends are then paid out to the unit holders as preferred shares. The dividend in the preferred share is like “in the money” covered call option where you are getting a yield that is a little higher than the average preferred share in the market today. From a preferred shares standpoint, because these are deep in the money calls, he thinks it is a very good way to have income in your portfolio and a low risk way to do it.