Investors in Dividend 15 Split Corp. can breathe easy: the net asset value stands a comfortable C$4.64 above the critical threshold that would halt the Class A monthly distribution. The fund’s latest NAV of C$19.64 per share leaves a generous buffer against the C$15 limit, below which the equity tranche receives nothing. That margin, combined with a newly approved buyback program, gives the income stream a double layer of support.
The Toronto Stock Exchange has given the green light for a share repurchase plan, allowing the fund to buy back and cancel its own stock. Management intends to use the buyback to narrow the persistent discount between the market price and the underlying NAV, effectively propping up the per-share value of the remaining units. This tool supplements the fund’s existing income-generation engine and signals confidence in the portfolio’s long-term stability.
The July distribution was confirmed on schedule: shareholders on record as of June 30 will receive their payment on July 10. Class A holders get C$0.10 per share, or C$1.20 annualized, while Preferred shareholders collect C$0.05833 monthly — a steady 7.00% annual yield on the original issue price. Since inception, the fund has distributed a combined C$41.40 for each share pair (C$29.30 to Class A and C$12.10 to Preferred), underscoring a track record of consistent payouts.
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That income is underpinned by a concentrated portfolio of 15 Canadian dividend heavyweights, including the Big Six banks (Bank of Montreal, Bank of Nova Scotia, CIBC, Royal Bank, TD Bank, National Bank), alongside names like BCE, Manulife, Enbridge, Sun Life, TELUS, Thomson Reuters, TransAlta, and TC Energy. Management actively writes covered calls on these holdings to generate extra premium, pushing the dividend coverage ratio to roughly 1.5 times. Both share classes benefit from Canada’s “eligible dividend” tax treatment, a plus for domestic retail investors.
The stock has been riding a strong wave, closing the month at C$8.83 and trading recently near C$8.74 — within spitting distance of the 52-week high of C$8.97 set in late June. It has risen in nine of the past ten sessions, and the 50- and 200-day moving averages sit at C$8.05 and C$7.71, respectively. At current levels, the forward yield clocks in between 13.45% and 13.6%, depending on the exact price. With a C$4.64 NAV buffer, a new buyback authority, and a portfolio of Canada’s most reliable dividend payers, the fund’s income proposition looks well fortified.
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