{"id":52609,"date":"2026-09-18T22:03:39","date_gmt":"2026-09-19T02:03:39","guid":{"rendered":"https:\/\/prefblog.com\/?p=52609"},"modified":"2026-09-18T22:03:39","modified_gmt":"2026-09-19T02:03:39","slug":"is-a-split-share-corporation-more-than-the-sum-of-its-parts","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=52609","title":{"rendered":"Is a split-share corporation more than the sum of its parts?"},"content":{"rendered":"<p>Andrew Galbraith very kindly quoted me in his piece regarding DFN, <a href=\"https:\/\/www.theglobeandmail.com\/investing\/education\/article-is-a-split-share-corporation-more-than-the-sum-of-its-parts\/\">Is a split-share corporation more than the sum of its parts?<\/a> The reader&#8217;s question was <i>I would like to buy Dividend 15 Split Corp. (DFN) stock in a TFSA. But I do not understand how it can pay 10 cents per month. That means a yield of about 14 per cent at its current price. What gives? And what is behind recent big fluctuations in its net asset value?<\/i>:<\/p>\n<blockquote><p>\u201cPart of the reason why they\u2019re able to pay such enormous dividends in good times and still keep going is because in bad times they don\u2019t pay out squat,\u201d said James Hymas, president of Hymas Investment Management, who has written extensively on split-share corporations.<br \/><b>&#8230;<\/b><br \/>Mr. Hymas cautioned against expecting covered call income to reliably cover the difference for capital shareholders. \u201cThat is not a strategy that one can consistently apply through the whole portfolio all the time.\u201d A rising market is crucial to ensuring sufficient capital gains to fund distributions, he said.<\/p>\n<p>DFN\u2019s capital share distributions last year were a combination of eligible dividends and capital gains income, which Mr. Hymas noted could derive from portfolio rebalancing as well as option writing.<br \/><b>&#8230;<\/b><br \/>Mr. Hymas said there is one rare exception to his general skepticism about these investments: if the unit\u2019s net asset value is at a very small premium to the price of its preferred shares.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Andrew Galbraith very kindly quoted me in his piece regarding DFN, Is a split-share corporation more than the sum of its parts? The reader&#8217;s question was I would like to buy Dividend 15 Split Corp. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-52609","post","type-post","status-publish","format-standard","hentry","category-press-clippings"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/52609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52609"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/52609\/revisions"}],"predecessor-version":[{"id":52610,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/52609\/revisions\/52610"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}