Dividend 15 Split Corp.

DFN-T

Analysis and Opinions about DFN-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
November 18, 2019
It is a split share financial corp. It has a big distribution. There was volatility in three periods from 2011. You have to be mindful of the volatility. There is some leverage involved and downside risk in times of market volatility. He would avoid this at the moment.
It is a split share financial corp. It has a big distribution. There was volatility in three periods from 2011. You have to be mindful of the volatility. There is some leverage involved and downside risk in times of market volatility. He would avoid this at the moment.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$8.460
Owned
Unknown
DON'T BUY
DON'T BUY
August 12, 2019
It is a strip corp. where they strip out the dividend. You will see price shocks on this one. It is highly leveraged. He does not like it. There is a lot of risk here.
It is a strip corp. where they strip out the dividend. You will see price shocks on this one. It is highly leveraged. He does not like it. There is a lot of risk here.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$8.700
Owned
Unknown
DON'T BUY
DON'T BUY
July 19, 2019
Yield of the ETF is higher than the components of the underlying stocks. They split the stock into preferred and equity. They sell options out of the equity version. A lot of investors don't know that there is leveraging that can hurt the price, and a high yield comes with risk.
Yield of the ETF is higher than the components of the underlying stocks. They split the stock into preferred and equity. They sell options out of the equity version. A lot of investors don't know that there is leveraging that can hurt the price, and a high yield comes with risk.
John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$8.890
Owned
No
DON'T BUY
DON'T BUY
September 24, 2018

He is not bullish on Canada and would not play dividends through this one.

He is not bullish on Canada and would not play dividends through this one.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$10.010
Owned
Unknown
COMMENT
COMMENT
July 26, 2018

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.

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.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$10.290
Owned
No
DON'T BUY
DON'T BUY
May 7, 2018

The credit rating is lower on these splits than on dividend shares. Don't waste your time. Buy individual preferred shares.

The credit rating is lower on these splits than on dividend shares. Don't waste your time. Buy individual preferred shares.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$10.600
Owned
Unknown
DON'T BUY
DON'T BUY
December 27, 2017

They take bank stocks, or insurance and in some case energy companies, and then they split it internally into preferred shares or common shares, and then they write covered calls on the common shares. They are getting yields around 13-14%. That brings up the question: How is that possible? He’s been doing coverage calls for 30 years, if he get 10% or 12% he is very pleased, but you’re never going to do that consistently. What they’ve got is a very very good yield but if you take a look at the volatility, and there's a lot of volatility, in 2016 the market was down 15% and this stock was down 60%. In 2007-2008, the market was down 60% and this was down 80%. It’s a yield play. Never trust the yield. You have to look behind and see what’s going on there and what’s creating the yield. He wouldn’t touch this.

They take bank stocks, or insurance and in some case energy companies, and then they split it internally into preferred shares or common shares, and then they write covered calls on the common shares. They are getting yields around 13-14%. That brings up the question: How is that possible? He’s been doing coverage calls for 30 years, if he get 10% or 12% he is very pleased, but you’re never going to do that consistently. What they’ve got is a very very good yield but if you take a look at the volatility, and there's a lot of volatility, in 2016 the market was down 15% and this stock was down 60%. In 2007-2008, the market was down 60% and this was down 80%. It’s a yield play. Never trust the yield. You have to look behind and see what’s going on there and what’s creating the yield. He wouldn’t touch this.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$10.930
Owned
No
DON'T BUY
DON'T BUY
September 1, 2017

Doesn’t like this and never has. They take bank shares and divide them up, so you have some that are newer issues, the preferreds, and they split off the equity portion. Then they write Calls on the equity portion. You are basically getting the yield from the preferred and the yield from the equity portion, which is in fact leveraged. You have to ask, if something is paying 6%, 7%, 8%, and the highest paying dividend on this is only 4%, where is it coming from? If you compare this against ZWB-T or ZEB-T, they far outperformed this. You’re getting a decent dividend, but you are not getting any performance.

Doesn’t like this and never has. They take bank shares and divide them up, so you have some that are newer issues, the preferreds, and they split off the equity portion. Then they write Calls on the equity portion. You are basically getting the yield from the preferred and the yield from the equity portion, which is in fact leveraged. You have to ask, if something is paying 6%, 7%, 8%, and the highest paying dividend on this is only 4%, where is it coming from? If you compare this against ZWB-T or ZEB-T, they far outperformed this. You’re getting a decent dividend, but you are not getting any performance.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$10.740
Owned
Unknown
COMMENT
COMMENT
August 14, 2017

Banks, insurance companies, pipelines – all the big dividend payers. He does not mind owning any of these things. It is diversified among a couple of sectors. He has no strong opinion either way. Not a bad buy below $11.

Banks, insurance companies, pipelines – all the big dividend payers. He does not mind owning any of these things. It is diversified among a couple of sectors. He has no strong opinion either way. Not a bad buy below $11.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$10.740
Owned
Unknown
COMMENT
COMMENT
August 8, 2017

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.

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.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$11.150
Owned
Unknown
COMMENT
COMMENT
July 28, 2017

This really depends on the underlying basket. They come to the market and usually strip out the common shares versus preferred shares. They take the capital from the preferreds, concentrate it and lever it up on the underlying common stock. As a result, you have a much bigger dividend, but you need to have the stocks working for you. If they don’t, you can get twice the risk, and there is usually an expiry of 5-10 years and you can be in a situation of a capital loss.

This really depends on the underlying basket. They come to the market and usually strip out the common shares versus preferred shares. They take the capital from the preferreds, concentrate it and lever it up on the underlying common stock. As a result, you have a much bigger dividend, but you need to have the stocks working for you. If they don’t, you can get twice the risk, and there is usually an expiry of 5-10 years and you can be in a situation of a capital loss.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$11.150
Owned
Unknown
COMMENT
COMMENT
May 4, 2017

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.

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.

Richard Croft
President, R.N. Croft Financial Group Inc.
Price
$11.000
Owned
Unknown
COMMENT
COMMENT
December 9, 2016

This holds 15 stocks, both Canadian and US banks. He likes this. If you are going to the capital share on that, that is probably the way he would play it if you are a growth investor. If you are an income seeking investor, he thinks you can be pretty comfortable with the dividend and the preferred share will stay intact, and you will be fine.

This holds 15 stocks, both Canadian and US banks. He likes this. If you are going to the capital share on that, that is probably the way he would play it if you are a growth investor. If you are an income seeking investor, he thinks you can be pretty comfortable with the dividend and the preferred share will stay intact, and you will be fine.

Richard Croft
President, R.N. Croft Financial Group Inc.
Price
$10.870
Owned
Unknown
COMMENT
COMMENT
September 23, 2016

If he has a right product, this is one where they split it off and preferreds go one way and the equity holders get more of a leveraged play on the dividend basket. If the mechanics are set up properly, this can be really rewarding for people that have a view that dividend stocks can go higher, which is his view. He is not sure he would use this for his clients, as they really enjoy getting their dividends.

If he has a right product, this is one where they split it off and preferreds go one way and the equity holders get more of a leveraged play on the dividend basket. If the mechanics are set up properly, this can be really rewarding for people that have a view that dividend stocks can go higher, which is his view. He is not sure he would use this for his clients, as they really enjoy getting their dividends.

Greg Newman
Director & Portfolio Manager, Scotia Wealth Management
Price
$10.690
Owned
Unknown
COMMENT
COMMENT
May 10, 2016

If you think interest rates are going to rise at some point later in the year, these things will continue to do well. This is leveraged to a certain sector in the economy, and if that drops, you can suffer. The return you are getting on this is the yield. If you Buy call options on this, that would play out and you do very well. This is a leveraged exposure to a sector that has done very well.

If you think interest rates are going to rise at some point later in the year, these things will continue to do well. This is leveraged to a certain sector in the economy, and if that drops, you can suffer. The return you are getting on this is the yield. If you Buy call options on this, that would play out and you do very well. This is a leveraged exposure to a sector that has done very well.

Richard Croft
President, R.N. Croft Financial Group Inc.
Price
$10.490
Owned
Unknown
Showing 1 to 15 of 24 entries