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Dividend 15 Split Corp (DVSPF)

OTC Markets
Symbol
Exchange
Currency
DFNTorontoCAD
DFN_paTorontoCAD
DVSPFOTC MarketsUSD
DFNCBOE CanadaCAD
Currency in USD
Disclaimer
3.8500
+0.0850(+2.26%)
Delayed Data

DVSPF Comments

what's happening to the market of DFN? Can anyone advise me to this?
It's simple. DFN is a Company that issued two types of stock: Preferred and Class A. Preferred NAV will always be $10. Class A, will take the reminder NAV. When you sum current market prices of Preferred and Class A, you get the current market value for DFN Company (or fund). If it is below $15, Class A investors do not receive dividend but Preferred investors do receive dividend. For you to analyse if DFN is at a good price, I'd suggest opening an Excel and putting all the weighted positions DFN holds. Then, divide by the total number of units and see the current total market value of your created fund in Excel based on DFN holdings. This way, you'll see whether DFN is trading at par, discount or premium. Remember that Preferred always get $10 NAV!
If market sentiment towards DFN holdings worsens and holdings start to go down, it's natural that the fund goes down harder because it pays a monthly dividend subject to the condition that if the sum of Preferred and Class A is less than $15, no dividend will be paid. Therefore, investors prefer to go somewhere else and sell DFN when they forecast they will not receive any dividends. But DFN also writes covered call options, which is mainly to try to reduce volatility and keep paying Preferred and Class A dividends. But if the fund portfolio composition changes abruptly in the short term because of wrong managerial decisions; it doesn't matter if it has the best 15 quality dividend stocks of Canada, it will keep falling due to lost opportunities to gain more from long-term or losses realised too soon in the short-term. I suggest you read the Annual report to look at the management expenses. This fund is cyclical and everytime it misses Class A dividend payments, the Board kicks in with a buy-back program to keep DFN's NAV above $15. But these are all suppositions, first do your Excel and see the result of the portfolio. Perhaps Investing has a functionality in "Holdings" section and there is no need of Excel!
what is happening to DFN.. underlying securities aren't crashing as hard.
A fund with a penny stock behavior! Congrats!
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