Q: Hi 5i
At what share price will FTN discontinue its dividend? I know you've mentioned split share dividends are dependant on NAV but how does one find the NAV value? I cant seem to find it??
How do you view dividend going forward .....?
Does current dividend look like it in trouble at these levels?
And are the preferred dividends fixed or subject to adjustment ?
Thx
At what share price will FTN discontinue its dividend? I know you've mentioned split share dividends are dependant on NAV but how does one find the NAV value? I cant seem to find it??
How do you view dividend going forward .....?
Does current dividend look like it in trouble at these levels?
And are the preferred dividends fixed or subject to adjustment ?
Thx
5i Research Answer:
Quadravest posts the NAV here. It is not the price of FTN that dictates the dividends, but the price of its underlying holdings. NAV is $20.71 as of the end of February. There is still a cushion here. The fund has stopped dividends before: in 2018, 2019 and 2020, also 2008, 2009, 2011. The dividend is also lower than what it was in prior cycles. Considering the very weak market and the possibility of recession, we would consider the fund and the dividend to be riskier-than-average right now. Preferred dividends are fixed.