I’m not very happy with the Directors of BAM Split Corp..
The last dividend on their preferred shares went ex on February 20. They have not yet declared a current dividend, according to the Toronto Stock Exchange. This follows last year’s fiasco with the first BNA.PR.C dividend, an eMail sent on the weekend (not answered) and a voice mail message left today (not answered).
The company is sitting on client money of about $1.7-billion. This inattention to detail isn’t good enough, guys.
[…] PrefBlog Canadian Preferred Shares – Data and Discussion « BNA.PR.A BNA.PR.B & BNA.PR.C Dividends Not Yet Declared […]
I went to their site and must say after surfing on it that the whole outfit doesn’t look very serious but for the “BAM” component of their name. All they say is that the own a substantial chunk of shares of BAM.A and that they have an office in one of BPO’s building. I haven’t cross-verified the directors. Are they truly linked to BAM? If so, should I also worry with my BAM.PR.M & N?
Annette, and Mr. Hymas . . . there is no cause for concern here . . . either with the BNA dividends, and especially with the BAM dividends.
We would all agree that early declaration is positive because it confirms the underlying company’s intention and ability to pay. For me, it’s also another positive underpinning for the share price to rise as well, since early dividend declarations can only be perceived as positive. I also agree that late declarations, as well as spotty website info, are clear examples of less than adequate communication.
However, in this case, the underlying company, especially in the case of BAM is very well-footed; in fact Annette, BAM.PR.M & N are both showing signs of new found buyer support right now. At one point yesterday, BAM.PR.M was up almost a full dollar.
This communcation [or lack thereof] issue is one that pref investors have to live with day to day . . . in this case even I would be very unconcerned about the divs eventually being declared and paid in a timely manner.
madequota
I forgot to mention . . . BAM.PR.M & N have both been declared with an ex date of June 11, according to Reuters.
BNA’s are still TBA, but I sense not MIA!
madequota
Annette –
I certainly agree that the http://www.bamsplit.com website isn’t much to look at. There are much better split-share websites out there, for instance http://www.dividend15.com.
The bamsplit.com website does an adequate job, however – BAM Split Corp. is a passive fund with a single underlying investment and no fancy stuff – like covered call options – to clutter things up. They don’t have much to say … so they don’t bother saying it!
Which, I suspect, is why they make mechanical errors with things like dividend declarations. Since there’s very, very little to do … the few things that do need doing don’t get done. It’s not ideal, but it’s human.
I am not concerned about the credit quality of BAM Split. All those shares are safely on deposit and spinning out cash. The firm is entirely legitimate and above-board … there’s just a certain amount of carelessness with detail that I abhor. It just makes things difficult for investors who might be considering a trade in the next week or so – which is quite good enough for a sharply worded post on PrefBlog!
madequota –
I have no qualms that the dividend will, eventually, get declared and paid and think we’d have to go through three or four more credit crunches all piled on top of each other before this became an issue.
My concern is for trading purposes. There is absolutely no reason why this company can’t declare its dividends a month in advance; at the very least, they should sticking to some kind of routine schedule.
Markets are unpredictable enough, without be exacerbated by sheer inattention.
I do agree with you Mr. H . . . and I am glad you have a “concern for trading purposes”! (as opposed to investment purposes which seems to dominate this space.)
On that subject, how about the pref market today?! the buyers have come to life, and we’re seeing some very, very nice forward movement. Floor markets on the bank prefs are filling up with buyers I haven’t seen for a long, long time.
My only explanation would be the market’s “relief” over yesterday’s RBC ABC exposure announcement. Do you have any other theory on this one?
In any case, sit back, put your tray tables in a downright position, and enjoy the flight!
madequota
[…] of just under 3.2:1 as of April 30, according to the company. The ex-date of the current dividend is not yet known. Now with a pre-tax bid-YTW of 6.57% based on a bid of 21.06 cum dividend and a hardMaturity […]
[…] wouldn’t normally post on such a routine matter as dividend declarations, but having made an issue of the matter I will note that dividends for these issues have been […]