Opinions
Richard Croft
Dividend 15 Split Corp.
DFN-T
COMMENT
May 04, 2017
$11.000
Stock price when the opinion was issued
investment companies
funds
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
DON'T BUY
DON'T BUY
You get a magnification of performance both on the upside and the downside. So much easier to just buy the individual holdings, collect the dividend, get the capital appreciation, and not pay a fee. Why buy this manufactured security when you can buy the real thing? Doesn't trade well, and you're locked in.
investment companies
funds
WEAK BUY
These companies are hybrids created by the big brokerages and owned by banks like Woody Gundy. They enhance yield by splitting off the growth portion of a stock from the yield-paying portion. Usually, this works, but you're giving up growth opportunities. Fees are involved, though. He doesn't own these derivatives. Not a bad idea for a retail investor looking to increase income.
investment companies
funds
HOLD
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.
investment companies
funds
Dividend 15 Split Corp. (DFN-T) or Dividend 15 Split Corp. II (DF-T)? Both are Split shares. This one is 15 banks and financial institutions in Canada and the US. You have a capital share which is paying a 16% dividend, which comes back to the unit Holder. You are just getting the capital growth that is coming from the banks. He wouldn’t buy both, because you are looking for either growth or income. He would use one or the other and build that in your portfolio.