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Dividend 15 Split Corp. Class A Shares (DFN)
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Canoe EIT Income Fund (EIT.UN)
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Mulvihill Canadian Bank Enhanced Yield ETF (CBNK)
Each of the above mentioned have incredible yields, that pay monthly dividends - CBNK - 9.78%, EIT.UN - 8.74%, DFN - 22.94%. Could you comment on each of the 3 in terms of sustainability and could you rate them in order of preference, or not at all. Could you also recommend other high yield monthly dividend paying stocks. Thank you all for your incredible service.
EIT.UN is a long established closed end fund, with a 5-year annualized return of 15.33%. It has done well by largely being in the right sectors at the right time. It has never missed a dividend though the rate was higher back in the early 2000s. DFN is a class A split share corporation investing in dividend stocks. It uses leverage, and thus offers a high yield but only if asset value is maintained, in order to protect its preferred shares. It omitted two dividends last year, and also missed dividends in 2020. Prior to that it had a good record, but has never raised its dividend. 5-year return is a paltry 4.53%. CBNK is a small ($66M) enhanced yield fund focusing on bank stocks, with 25% leverage, and using call options to enhance income. It has a short history (one year 9.81%) but seems fine overall for income investors. We would rank: EIT.UN, CBNK, DFN.
Others to consider: QMAX, ZWT, HDIV