Bought this stock for the yield and thought the canadian banks and insurance companies were oversold last spring. i was lucky and guessed right. This one a product of Brompton Group, well managed split stock. Yield now is down to 14.63% and DGS has risen from my initial buying at around 5.75 cad to current 8.20 It pays .10 monthly distribution. Holds a great mix of Canadian dividend paying companies. Cant say that i have had a better stock as far as return yield and capital appreciation. Here are the top stocks they hold by weighting, as of Dec 31 2016. Top 10 Holdings CI Financial Corp The Toronto-Dominion Bank Sun Life Financial Inc. Manulife Financial Corporation Bank of Montreal National Bank of Canada Royal Bank of Canada Power Corporation of Canada Great-West Lifeco Inc. Canadian Imperial Bank of Commerce
Took some profits in DGS, reduced my holdings a bit, to invest in some venture plays and regretting at this point in time. Banks bounced back near 52 weeks highs again, and other dividend stocks in their portfolio holding steady.
Rolled the cash back into DGS and DF.to,, both pay .10 per month ( around 14% annual) and have similar stocks in their portfolios, Canadian banks, Life insurers, And divvy favs like BCE, T, TRP, ENB , and Loblaws.
Was fortunate to take some profits on DGS near the highs at 8.30 range, and was adding last week at 7.83 again. Will park these away for a while......
Speaking of big dividends , anyone have an opinion on AIM, AIMIA, the aeroplan company that recently heard that AC is dropping them as the rewards plan for Air Canada. Last trade at 2.14 , and paying a .20 Quarterly dividend. Ex dividend date is June 14....... Seems the market has priced in the elimination of the dividend by the company......financials seem good for now.... wondering if there will be a big bounce if AIM can come to an agreement with Westjet or some other airline ....
DGS dropping today, after announcing this: Dividend Growth Split arranges overnight offering 2017-07-26 13:11 MT - News Release An anonymous director reports DIVIDEND GROWTH SPLIT CORP. ANNOUNCES OVERNIGHT OFFERING Dividend Growth Split Corp. is undertaking an overnight treasury offering of Class A and preferred shares. The sales period for this overnight offering will end at 9 a.m. ET on July 27, 2017. The offering is expected to close on or about Aug. 3, 2017, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange. The Class A shares will be offered at a price of $8 for a distribution rate of 15 per cent on the issue price, and the preferred shares will be offered at a price of $10 for a yield to maturity of 5.7 per cent. The closing price on the TSX for each of the Class A and preferred shares on July 25, 2017, was $8.32 and $10.22, respectively. The Class A and preferred share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the company (calculated as at July 24, 2017), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering. The company invests in a portfolio of common shares of high-quality, large-capitalization companies, which have among the highest dividend growth rates of those companies included in the S&P/TSX Composite Index. Currently, the portfolio consists of common shares of the following 20 companies: Great-West Lifeco Inc.; Industrial Alliance Insurance and Financial Services Inc.; Manulife Financial Corp.; Sun Life Financial Inc.; Bank of Montreal; Bank of Nova Scotia; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; Toronto-Dominion Bank; CI Financial Corp.; IGM Financial Inc.; Power Corp. of Canada; BCE Inc.; Rogers Communications Inc.; Shaw Communications Inc.; Telus Corp.; Canadian Utilities Ltd.; Enbridge Inc.; TransCanada Corp. The investment objectives for the Class A shares are to provide holders with regular monthly cash distributions, targeted to be 10 cents per Class A share, and to provide the opportunity for growth in the net asset value per Class A share. The investment objectives for the preferred shares are to provide holders with fixed cumulative preferential quarterly cash distributions, currently in the amount of 13.125 cents per preferred share, and to return the original issue price to holders of preferred shares on the company's maturity date (Nov. 28, 2019). The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC and Scotiabank.
^ The release is very promising. Let me check my portfolio. I'll share this information with my investing group. Thanks!
Well the good news is that the offering was at 8$ for the A shares which pay about 15% annual distributions, with the current .10 per share monthly distribution and those same shares an be had 10 to 15 cents below that currently.
Made a few changes to my portfolio, DGS has done quite well since my buys around 7.85 average in august. Cut my holdings back to 50% in DGS and added some FTN, which holds financial stocks in both Canada and the US . With another interest hike coming in the US in december, i think these are good stocks to hold. FTN pays a monthly dividend of .1257 currently yielding 14.58 % annually and perhaps over 15% if you reinvest monthly distributions. It has seen a bit of a selloff, ( much like DGS had) after doing a big 79 million $ overnight offering and this has created a great buying opportunity in this environment where bank stocks are doing so well. *** PIC.a , which holds only Canadian banks saw a very nice jump in September , from 6.75 to 7.45 most of that in the past week. Here was the news of the overnight offering done by FTN ( split fund ran by Quadravest) Financial 15 Split completes $79.1M overnight offering 2017-09-28 08:40 MT - News Release An anonymous director reports FINANCIAL 15 SPLIT CORP. COMPLETES OVERNIGHT OFFERING OF $79,109,100 Financial 15 Split Corp. has completed the overnight offering of 3,897,000 preferred shares and 3,897,000 Class A shares of the company. Total proceeds of the offering were $79.1-million, bringing the company's net assets to approximately $480.8-million. The shares will trade on the Toronto Stock Exchange under the existing symbols of FTN.PR.A (preferred shares) and FTN (Class A shares). The preferred shares were offered at a price of $9.90 per preferred share to yield 5.30 per cent and the Class A shares were offered at a price of $10.40 per Class A share to yield 14.50 per cent. The offering was co-led by National Bank Financial Inc., CIBC, Scotia Capital Inc. and RBC Capital Markets, and also included BMO Capital Markets, GMP Securities LP, Canaccord Genuity Corp., Raymond James, Desjardins Securities Inc., Echelon Wealth Partners, Mackie Research Capital Corp., Manulife Securities Inc. and Industrial Alliance Securities Inc. The net proceeds of the offering will be used by the company to invest in an actively managed, high-quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers as follows: Bank of Montreal; National Bank of Canada; Bank of America Corp.; Bank of Nova Scotia; Manulife Financial Corp.; Citigroup Inc.; Canadian Imperial Bank of Commerce; Sun Life Financial Services of Canada; Goldman Sachs Group Inc.; Royal Bank of Canada; Great-West Lifeco Inc.; JP Morgan Chase & Co.; Toronto-Dominion Bank; CI Financial Corp.; Wells Fargo & Co.
Well now nearly a month since my buy into FTN, and have collected one distribution , and saw about a 5% gain so sold most of this to buy another beaten down split share fund, FFN, who recently did an offering. Dropped to 8.70 , where i began buying, and recently added more at 8.75... moving nicely in the right direction and plan to hold this one until its back above 9$ , or better, depending on how the US financial stocks , and the canadian banks , are doing going forward.
Well back into DGS again today at 8.15, really like the low premium to NAV and 14.7% distribution. I am out of FTN and in time as they announced another offering today so expect that to fall for a while.
Adding more DGS at 7.90 range......this may take a while to bounce back after 2 offerings within 6 months that raised just over 150 million $ for DGS to invest back into these names in their portfolio. At last report these were the stocks they held... Power Corporation of Canada ********************************5.3% Royal Bank of Canada*****************************************5.2% National Bank of Canada**************************************5.2% IGM Financial Inc.**********************************************5.2% Bank of Nova Scotia (The)************************************5.1% Canadian Imperial Bank of Commerce**********************5.1% Sun Life Financial Inc.****************************************5.1% Bank of Montreal***********************************************5.1% Shaw Communications Inc.************************************5.0% TELUS Corporation*********************************************5.0% Industrial Alliance Insurance and Financial Services Inc.****4.9% Manulife Financial Corporation*********************************4.9% Great-West Lifeco Inc.*******************************************4.9% CI Financial Corp.************************************************4.9% Rogers Communications Inc.***********************************4.9% BCE Inc.**********************************************************4.9% Canadian Utilities Ltd.********************************************4.8% Toronto-Dominion Bank (The)***********************************4.7% TransCanada Corporation***************************************4.7% Enbridge Inc.******************************************************4.6% Cash and short-term investments*******************************0.5% **************************************************************Total 100.0%
I remain committed to DGS and FFN in my portfolio... paying handsome dividends and still 2 of the best values in the split funds, if you take premium to NAV into account. I now have 60% of my TFSA portfolio in these 2 stocks. Currently FFN split has a NAV of 18.29 , which means about 8.29 for FFN a shares . It last traded at 8.84 which is only .55 above NAV and the premium at the lowest of Quadravest split funds at 6% above NAV . I have owned DF in the past and have watched it rocket up, inexplicably to 8.83 last trade BUT WITH A NAV of only 5.65 Trading at a hefty premium to NAV of 56%. It also is one of the least safe... and holders will not gets dividend if the NAV drops .66 which would be below 5.00 where the cutoff is for dividend payout to the A shares. FTN is another of Quadravest split funds which holds almost the identical stock that FFN has, but is more heavily weighted in Canadian stocks. FFN is over 50% US financials. FTN last trade at 10.45 with a NAV of 8.46 ,very close to that of FFN (8.29). FTN premium to NAV up at 23.6 % DGS has moved up nicely, it is from Brompton funds, which seem to be better money managers.. and consequently they have done 3 offerings this year, which has held the stock price in check. DGS current NAV is 7.27 with the last trade at 8.14 basically a premium of 12% to NAV. To recap the best is FFN at lowest premium to NAV of 6% DF by far the worst with a premium to NAV of over 56%!!!
Wow a pullback in the general stock markets in North America, the DOW down the biggest daily drop in 2 years , losing 665 points. It was overdue tho, imho. This bull market getting a little long in the tooth. There is some safety in these financial plays, and i took some off the table with DGS, and added a bit of FFN on the pullback. FFN a much safer play as far as NAV goes , altho it pays a slightly lower % distribution. NAV to jan 31 on FFN was 8.50 before dist and 8.35 after , so with the FFN shares last trade at 8.72 only a .37 premium to NAV,, best of the split funds that i watch. PIC.a is also a good one , but pays quarterly and not monthly. DGS, which holds all Canadian dividend stocks saw its NAV drop quite hard the past 2 weeks from 7.06 in mid JANUARY to 6.57 at the end of the month after the last distribution. DGS last trade at 7.95 so Premium to NAV now is $1.38... Still better than DF, which saw its NAV drop to 5.22 after distributions to JAN 31 , and further the last 2 days.... It did fall .38 to close at 8.33 ( intraday low was 7.59), but the close was still a huge 3.11 premium to NAV and likely we will see the DF distributions suspended for payment in MArch . Very good time to unload DF, if you own it. Or to short it if you dont.
Well the pullback in the stock market that had to happen , seems to have arrived. Even the better split funds , DGS and FFN have pulled back hard... but not nearly to the extent DF has. I am quite certain there wont be a distribution for DF next month, unless there is a hard bounce back up in the dividend stocks they have in their portfolio. FFN as i had stated will be the safest bet for continued distributions for the next year, as the NAV was well above the 5$ threshold , last reported at 8.35. It is probably under 8$ now with the pullback, but the stock only trading at 8.54 or so, last trade.
After unloading 90 % of my DGS holding , i bought some 50% or so back on the big pullback , as CIBC seemed to be unloading or shorting a big position. Averaged back in at about 7.40.... Still have FFN as my biggest holding altho took some off the top as i rebought DGS. Still like FFN as the best of the Quadravest split funds.
Quite a bounce back for DGS after the unit NAV came perilously close to the 15$ mark where distributions wouldnt be paid to the capital A shares. IN the past 8 sessions the stock has bounced back over 10% and now above the 7$ mark again. FFN also saw a quick pullback but has regained the 8.90 range ...
