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This summary was created by AI, based on 1 opinions in the last 12 months.

Financial 15 Split Corp (FTN-T) employs a leverage strategy that enables it to provide substantial dividends, typically utilizing a 2:1 leverage ratio. This approach allows investors to achieve greater returns in favorable market conditions; however, it also introduces significant volatility, leading to pronounced fluctuations in performance. Experts note that while leverage can amplify gains, it can also result in considerable losses during downturns. Over a long investment horizon, like 20 years, it appears that investors might have fared better by simply holding a diversified basket of U.S. or Canadian banks, such as those represented by XLF or ZEB. Thus, while the high dividend yield can be attractive, the risks associated with leverage and volatility must be carefully considered.

Consensus
Mixed
Valuation
Overvalued
Similar
BMO.TO
DON'T BUY

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.

DON'T BUY

Leverage in security - good for traders, but not necessarily for retail investors.
Not the best way to get steady dividends. 
Good to buy at bottom of economic cycle.
Expect more volatility with this stock. 

COMMENT
FTN vs. LBS An interesting structure, but they have their own at his shop. One is a play on ENB. Very optimistic about the potential for ENB to continue raising its dividend. He also has a real estate split with a mix of long-term value REITs and industrial exposure to access the e-commerce trend.
DON'T BUY
Uses leverage and if markets go into risk off, then it could be really bad. Incredibly volatile instrument. Not for the average investor. There is a big yield, but you need to be ready for significant volatility.
DON'T BUY
Would be concerned about the payout. Seeing a devaluation. He thinks the market’s already turned, but you see it in the financials first because of rising interest rates. The derivatives are the problem, especially with Deutsche Bank with lots of exposure to Italy and Turkey.
COMMENT

Look at risk events. How will this perform in a stress environment? In 2006, this ETF had a nasty drawdown, almost 30-40%. During a recession, would expect similar behaviour. Could be OK for next 6 months.

DON'T BUY

He is not an expert on this holding. It has a strong yield (around 10%) that attracts many investors. During the 2016 market meltdown, it fell by about 50%. So he feels there must be leverage in this product. He suggests looking into the prospectus to better understand the leverage.

COMMENT

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.

COMMENT

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%.

DON'T BUY

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.

COMMENT

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.

COMMENT

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.

COMMENT

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.

DON'T BUY

14.5% yield. Look back further than a couple of years. The averaged yield has been 3%. In the ’08 crisis they went from about $18 to about $2. He believes they are paying out capital gains in their underlying companies. In the last few years there was no crisis so there was little risk.

COMMENT

With 14% yield it must be returning some capital. It is a closed-end fund so be careful. Split share companies give the dividends to one share and the growth to the other.

Showing 1 to 15 of 19 entries

Financial 15 Split Corp(FTN-T) Rating

Ranking : 3 out of 5

Star iconStar iconStar iconStar empty iconStar empty icon

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for Financial 15 Split Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Financial 15 Split Corp(FTN-T) Frequently Asked Questions

What is Financial 15 Split Corp stock symbol?

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

Is Financial 15 Split Corp a buy or a sell?

In the last year, 3 stock analysts published opinions about FTN-T. 1 analyst 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.

Is Financial 15 Split Corp a good investment or a top pick?

Financial 15 Split Corp was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Financial 15 Split Corp.

Why is Financial 15 Split Corp stock dropping?

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.

Is Financial 15 Split Corp worth watching?

3 stock analysts on Stockchase covered Financial 15 Split Corp In the last year. It is a trending stock that is worth watching.

What is Financial 15 Split Corp stock price?

On 2025-04-03, Financial 15 Split Corp (FTN-T) stock closed at a price of $8.07.