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Weekly 52-Week Low (or 52-Week High): BDT-T, BN-T, YES-X, SPB-T and More 52-Week Highs and Lows (Oct 09-15)This summary was created by AI, based on 1 opinions in the last 12 months.
Financial 15 Split Corp (FTN-T) has garnered mixed reviews from experts, primarily due to its use of leverage, which allows for larger dividend distributions. The typical 2:1 leverage means that investors can potentially realize greater returns, but this also comes with significant volatility, resulting in dramatic price swings. When markets are favorable, this strategy can yield impressive results; however, there are concerns that over the long haul, traditional investments, such as a diversified basket of U.S. or Canadian banks, might outperform this fund. The success largely depends on the decisions made by the fund's board regarding payout distributions, adding another layer of uncertainty for investors. Overall, while FTN-T can provide attractive dividend yields, its performance is closely tied to market conditions and leverage risks.
Is the high-yield sustainable?As he understands it, this is a corporate finance, where they will take the common and preferred shares, and lever up the common 2 for 1 in terms of growth, and the preferred shares just get the yield. A very concentrated play on the direction of the underlying basket of common. If you believe those 15 stocks are something to be owning right now, you are going to get some good capital appreciation and the yield is safe. If you go into a bear market with the 15 stocks, your yield is not at all safe. This is not without risk.
As he understands how these split corps work, one gets the dividend and one gets the growth. It depends on what you want out of life. If you want street yield, these manufactured products might be right for you. He doesn’t buy them because he doesn’t like his clients to be paying 2 layers of fees. He isn’t against the product. Dividend yield of 14%.
It is a company invented by bankers. They take a collection of companies and package up the stocks and sell out preferred shares and capital shares. They sell call options to enhance the yield. They have to maintain a certain net asset value. The preferred shareholders are protected. You may suddenly get no yield some quarters. The fees and the risk are also high, as well as the yield.
Not a fan of split shares and doesn’t think they are an adequate substitute for GICs or bonds. Their make up is a little convoluted in that there is a Capital Share and a Preferred Share. Effectively all the dividends that come out of the Capital Share get thrown into the Preferred Share. If all those companies don’t do very well, the dividends get cut and the preferred share dividend is susceptible to getting cut as well.
This separates the preferred shares from the capital. The dividend is pretty safe, because they are stripping it away from the capital, and it is the banks. The real risk is if you are Long the capital portion, what if you don’t get capital appreciation quickly. These deals last for about 5 years. If you don’t have capital appreciation, and you have embedded fees, the leverage investment on the capital financials won’t work out that well. That is the real risk. Feels the banks are pretty good place to be with interest rates likely to go higher in the next 5 years.
Believes that they issue preferred shares, and then common shares alongside. Then they take the preferred share capital and double up on the dividend yield. If that is correct, then he personally believes it is probably okay, but he would rather go with just picking your own bank. If you want more of a yield you can use more leverage to do that, and thinks you are going to be better off longer-term.
Financial 15 Split Corp is a Canadian stock, trading under the symbol FTN-T on the Toronto Stock Exchange (FTN-CT). It is usually referred to as TSX:FTN or FTN-T
In the last year, 1 stock analyst published opinions about FTN-T. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Financial 15 Split Corp.
Financial 15 Split Corp was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Financial 15 Split Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
1 stock analyst on Stockchase covered Financial 15 Split Corp In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Financial 15 Split Corp (FTN-T) stock closed at a price of $8.28.
Leverage allows them to provide such a large dividend. Typically 2:1 leverage, so you get double the bang for the buck. Lots of volatility, big ups and big downs. When markets are working, work great. Up to the board of the fund as to what distribution they pay out.
Over 20 years, you'd have done better just holding a basket of US or Canadian banks, such as XLF or ZEB.