Split Share Funds: Too Risky? Missed Dividends? 6 Points to Consider before Investing

[@YasirKhan-ob4qf]

Adrian's videos have singlehandedly changed the way my family and I invest. Thank you!

[@Got2Learn]

Very nice of you, I paid my share too about 3 months ago :)

[@YasirKhan-ob4qf]

@@Got2Learn Nice :)

[@Got2Learn]

@@YasirKhan-ob4qf yup :)

[@MegsCarpentry-lovedogs]

Adriano, I use stock charts not to decide on the growth of split corps but to consider the NAV along with when it appears to be oversold, using the RSI, and time to consider buying. Of course, I don't buy a full position right off the bat! I have learned to nibble using 1/3 or 1/4 positions. Like you have stated a few times, invest every month or 2 to get the dollar cost averaging and to keep increasing the income. Yes, the Drip is useful as well. A mix of some on the drip and some I do the investing choice. Like you said, "Diversification is King" (aka Queen, Wink wink!)

[@ayee604]

Thanks, Adrian! The average anual compound return factor is super helpful! 14:59

[@vicmiklausic5415]

Great Video Adrian! A much needed video for people to understand passive income investing. Most think of growth and not income. This is a fantastic much needed video which I will archive along with the Split fund video!

[@efullname]

Very good on details! I like split funds, the income is so generous and $15 unit NAV income cut off is a certainty that I can take advantage of. I don't care if I miss incomes I mean 22% to 30% is a great steal!

[@MegsCarpentry-lovedogs]

Complete and comprehensive presentation. I will share this with an investment seasoned senior retired friend. I am hinting to him to nudge his grandson to look into passive investing using your presentations and use the DRIP. The grandson is only 15 yrs of age. So, can you imagine if he started now to put something into savings! Wow! He could reach F.I.R.E sooner rather than later.👍 Thanks Adriano. Cheers East Canada.

[@PassiveIncomeInvesting]

Cheers , Coronado panama 🇵🇦 😘

[@BearInvesting]

I like your rule of not having more than 5% of your portfolio in a single split fund I have DFN and ENS only at the moment but try to keep them within that rule to keep my overall portfolio income safe. HYLD and HDIV are giving such high yields right now and they don't have the $15 rule so I bought tons of HYLD while it's giving out 12.5% yield.

[@Got2Learn]

Very good considerations Adriano, thank you so much for this video :)

[@25Soupy]

I bought $10K of CLM last week and $10K of DGS today. If this video came out yesterday I probably wouldn't have bought DGS today. I'm okay with missing a few months of dividends but I would have probably bought more HYLD or HDIV instead and buy DGS when the dividend is reinstated. At the same time it may end up being a good deal as the price was low because of no dividend currently.

[@PassiveIncomeInvesting]

See how fun diy investing is ?! 😉 the hunt for your perfect portfolio takes time . Enjoy the ride

[@arshdeepsidhu2530]

Love ur content, ur videos really helped me construct my income oriented portfolio, and I know with hard work and saving I can live off my portfolio in the future

[@PassiveIncomeInvesting]

Happy to help!

[@KOTNEmpire]

What do you make of split funds that have a consistently falling share a price. For example FTN that peaked at 58+ back in April 2007 and is now at 9.45. I only have 7400 shares of FTN but not sure if to keep investing in it.

[@PassiveIncomeInvesting]

Did you watch the video ??

[@KOTNEmpire]

@@PassiveIncomeInvesting yes I did. And I think i may not have incorporated the annual compound returns.

[@dkyrtata6688]

Adrian what do you think of North American Financial 15 Split (FFN)? With an annual yield of over 33%, it is hard to ignore even though the distributions have been suspended since May/2022. Initially, I figured that with all the CDN/US banks and other financial institutions the fund holds, it would only be a short while before the distributions are reinstated. Heck I can wait a year for a 33% yield. However, looking at the Canadian Life Companies Split fund (LFE) (containing the 4 large Canadian insurance companies), I see that its distributions were never reinstated. What are the chances that the same thing will happen to FFN? Your thoughts and speculations? FYI: The distribution of FFN was suspended for 10 months in 2020 but was fully reinstated thereafter.

[@PassiveIncomeInvesting]

I don’t own it . Too many misses for me . But can rewarding for a patient investor who can tolerate dividend misses

[@smcdonald12]

Thanks for the video. You might want to check the spelling of Finance on the banner for your channel.

[@soneeeee4440]

great video, i write a lot about splits on stockhouse, didn't realize you were out there!

[@PassiveIncomeInvesting]

Yes I am!

[@markbrown51]

Another great video thanks Adrian, keep them coming bud, you provide great and needed content.

[@owenkwong3358]

Liked 👍 Thanks Higher leverage more risks but higher yield just have smaller position that's it

[@ChristopherFlett]

Good video. Should be required viewing before people join FB group.

[@bananahead44]

great video! what is a reasonable premium to pay for dfn and ftn? What is too high? thanks

[@soneeeee4440]

I wouldn't think about it like that. If you see how sbc and lbs behave over time like the last 12 years, the best time to buy is during a crash like 2020, 2009, dec 2018 that's when they trade at a large discount. The key point is the $15 threshold, and they overshoot on the downside (discount to nav) and the upside (rising markets and holdings). He is absolutely right, I am careful on any A shares that are below 7 or even 8. SBC is one of the safest, rarely below $5 in 12 years. LCS on the other hand I view only as a trade now, with a lower distribution than the others and a narrow portfiolio, it's a gamble, and so I would buy it sub 4 or sub 3 and sell it at 5 or 6. There is also natural erosion to nav over time, so for long term buy the most stable is sbc. So for sbc, if you can start a position sub $11 that would probably make sense, that means the banks are lower than currently (still high on a all-time valuation basis), and then if we get a crisis, you load up. I bought sbc sub 7 and lbs in the 2-4$ range in 09 and 2020, so yield on my cost was about 30% when it started paying. A shares are not SWAN (sleep well at night) investments in general, and have to be monitored carefully to avoid capital losses that could eclipse any yield received. especially if purchased at or close to market peaks with big drops shortly afterward (like 21-22 and possibly 23)

[@SHHHMotoTravels]

Well done ! Great detail, thanks

[@Christina-ni2si]

Thumbs up for explaining Quadravest's website to me hahaha. Come on Quadravest, you gotta step up your website game!

[@CanadianDividendInvesting]

Awesome video update brother!

[@ed-lyne4082]

Thanks for this video! Always good to remember the basic. I lived in Montreal 15 years and I have been living in Quebec city since 2013. Hope to find a place where the weather is better 🥴

[@jcpaul6824]

Thanks for this Adrien. I appreciate the insight immensely.

[@danjennings4700]

Very good information and content, thanks

[@mikem.3746]

Hello You have been very helpfull in my investing portfolio About the $15 nav ,when in the month are they deciding to pay or not cause the nav might be $15 and 2 days later 14.50

[@PassiveIncomeInvesting]

at the time of declaration. usually near the end of the month

[@mson604]

Love your educational videos and guidance!

[@yogerula6023]

Very comprehensive

[@Goforitmanager]

I actually have considered going all in on split funds. I think the dividends make up for missed dividends.

[@PassiveIncomeInvesting]

"all in" is a bit extreme for me .... but hey to each their own :)

[@RockNcountrySTAR]

What can I say , you continue to inspire my friend , btw I picked up some DFN last week, what a beautiful discount I got, FTN too, I can retire anytime now , thanks Adrian I look forward to every video you post .

[@TheJohnmmullin]

Adrian: do you have any insight into whether/why HYLD has not paid/declared a July dividend?

[@PassiveIncomeInvesting]

They will dude don't worry :)

[@TheJohnmmullin]

@@PassiveIncomeInvesting I am an idiot...I was looking under Harvest press releases and it is a Hamilton fund haha. All good!

[@homann638]

Nice and appropriate video. Thank you. Any chance you could show us your neighborhood and street views and general things sbout PANAMA? I curious to know how a Panama move looks like.

[@PassiveIncomeInvesting]

stay tuned!

[@vicmiklausic5415]

One more thing Adrian, do you know what " Normal Course Issuer Bid" means. This was in the news for FFN and reading what it means does not sound good. Can you explain this also?

[@PassiveIncomeInvesting]

Share buybacks

[@vicmiklausic5415]

@@PassiveIncomeInvesting have you thought of using sharesight to help keep track of items and various information with regards to a portfolio?

[@tomcoleman550]

Hi Adrian, thanks for all your video's, learned a lot from you, long time viewer, first comment. I hope your safe in Panama, I saw bad stuff on internet and thought of you.

[@PassiveIncomeInvesting]

Yeah , don’t believe what you see . It’s super exaggerated. No issues whatsoever here 😉☀️☀️

[@joannapatterson4625]

Thank you for explaining in detail. Enjoy Panama🙂

[@chrisbouchard4780]

I went big with DGS for the dividend but now they stopped paying this month 😫🤔😭. Do you know why??

[@pauljose1261]

He explained it in Factor #2.

[@chrisbouchard4780]

DHS is only $6-7 and was paying before

[@chrisbouchard4780]

Thanks. Ya I just researched the current NAV added together. Bummer hope it goes back up soon. Thanks

[@Whatisthisstupidfinghandle]

Sorry. That’s what happens when you chase yield

[@chrisbouchard4780]

@@Whatisthisstupidfinghandle no worries. No regrets. Long term goals

[@sidb9540]

I just sold off all my SGR RIETs to buy SBC... I have been waiting for quite a while for SBC to reach 10% yeild and grabbed it finally!

[@paulsantori8920]

Time to go for my morning walk with Nina and listen to Adriano go over my favourite investments!! Only downfall is I’m going to want to buy more afterwards. Lol. Thanks for everything you and Erica do. I’m loving this 🧸market! Bring on the recession. Cheers 🍻

[@substanceo9335]

DGS declared it’s paying dividend for this month.

[@alexanderzolotar4645]

Congrats on 50k!!!

[@PassiveIncomeInvesting]

Thank you!!

[@jimjackson4256]

The fact that they are being sold probably means they are overvalued.Period.

[@PassiveIncomeInvesting]

not necessarily... like i said CEFs typically trade at Premiums

[@thebrazenman110]

Unfortunately your Facebook group is poorly run. I have been apart of the group for close to a year. two days ago I wrote "Amazingly some people don't believe in RRSP's" when I was answering a question in the group. One of your admins (Leanne Briscoe) deemed this comment to be "Judgmental" and kicked me out of the group. Does that seem like a reasonable response?? Allowing a immature, petty rude person like this to be apart of your social media presence is a bad idea. Good luck!

[@PassiveIncomeInvesting]

Good luck to you buddy ! I trust Her judgement . And it’s the best run investing group . That’s why there’s over 12k members and counting .

[@jbhighlights3881]

I hope LBS stays above 15$ it’s getting close:(

[@PassiveIncomeInvesting]

Lol , can’t stomach the heat ??? 🥵 😉

[@jbhighlights3881]

@@PassiveIncomeInvesting haha I’ll be holding for 20 years 💪

[@brianbonner1238]

How is life in Panama the last month or so with all of the disruptions going on and your down over $200k? Still a good move for others?

[@PassiveIncomeInvesting]

No issues whatsoever for me …

[@Malaka12345]

I'm still buying dfn at this price and still buying minto