Opinions John Hood
Dividend 15 Split Corp.DFN.TOCOMMENTAug 08, 2017
John HoodStock 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.
A closed end fund. They buy financials, and then issue a split share to the purchasers, one part preferred and the other equity. Whenever he looks at something offers a 10%-11% yield, and none of the components stocks are paying that, that raises a question. If he were selling Covered Calls, he would expect to get 10%-11% if he were selling the Calls against a whole basket of stocks that he had purchased. On this, that only happens sometimes, not all the time. There is some leverage going on here. Never trust yield.