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Dividend Growth Split Corp (DGS-T) opinion on 2017-04-20

Last Price Recorded: 7.9900 on 2017-11-23

ON STOCKCHASE SINCE Jan 2016

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COMMENT

Lorne Zeiler
Dividend Growth Split Corp was $7.910 at time of opinion
Owned : Unknown

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.

UNKNOWN

All opinions for DGS-T (3)

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2 DON'T BUY
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All opinions for DGS-T (3)

1 COMMENT
2 DON'T BUY
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More experts covering DGS-T

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