This summary was created by AI, based on 1 opinions in the last 12 months.
Dividend Growth Split Corp (DGS-T) is characterized by its concentrated stock portfolio and a significant leverage factor of 2:1, making it a high-risk investment. The company offers substantial income distributions, yet this can be misleading as the high dividends are largely a result of its use of leverage. Experts note that the stock tends to be twice as volatile as the broader market, leading to extreme performance variations; great returns during favorable conditions and considerable losses in downturns. While there can be gains if investors believe the market will rise, the risks associated with leverage, particularly regarding the preferred shares, can lead to complete capital loss. This investment is recommended only for sophisticated investors aware of these considerable risks.
Effectively a creation of a preferred share and a capital share. If the stock performed quite well, you are getting a leveraged investment effectively on the preferred share. EG, on a $60 stock, you could have a $30 preferred share and a $30 capital share. If the capital share goes from $60 to $66, you have now gone from $30 to $36 giving you a 10% improvement in terms of return. What people don’t realize is a) the leverage, but b) preferred shares in the structure have to be paid out first. Consequently, the way these are structured is that the dividend coming from the underlying portfolio, simply pays the dividend to the preferred share. If they are paying a dividend on the capital side, that is typically coming from expected price appreciation or option writing. If you are a higher risk investor, it is something you could consider.
A vehicle where they split out appreciating assets from the dividend. They pay the dividend stream of income to another holder, and you get a leveraged play on the dividend stocks without the dividend. Not a very good idea to own one of these in a down market. When you think markets are going to go the other way, it is not a bad way to get capital appreciation.
Dividend Growth Split Corp is a OTC stock, trading under the symbol DGS-T on the (). It is usually referred to as or DGS-T
In the last year, 2 stock analysts published opinions about DGS-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 Dividend Growth Split Corp.
Dividend Growth Split Corp was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Dividend Growth 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.
2 stock analysts on Stockchase covered Dividend Growth Split Corp In the last year. It is a trending stock that is worth watching.
On , Dividend Growth Split Corp (DGS-T) stock closed at a price of $.
Very concentrated stock portfolio, leverage of 2:1. Pays out a lot in income. A bit of smoke and mirrors here, but not in a nefarious way. Twice as volatile in general as underlying markets. When things are good, they're really really good. And when things are bad, they're really really bad.
If you're OK with leverage, and you think markets are going to go higher, you'll probably have a good experience. Last 2-3 months, with all the downside market risk, have not been pleasurable.
The misleading part is to look just at the dividend, and say that's a great dividend. Don't be fooled; it's the leverage talking to you. There's also a risk with the preferred shares of absolutely losing your money. For sophisticated investors only.