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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: In your answer to my question yesterday you noted "If the NAV falls below a certain level (found in the prospectus), the payout will be cut and that will likely be a huge hit to returns."

To be more precise the prospectus says:

"No regular monthly dividends will be paid on the Class A Shares in any month as long as any dividends on the Preferred Shares are then in arrears or so long as the Net Asset Value per Unit is equal to or less than $15.00 (calculated as described under Details of the Offering Valuation of Assets ). Additionally, it is currently intended that no special year-end dividends will be paid if after payment of such a dividend the Net Asset Value
per Unit (calculated as described under Details of the Offering Valuation of Assets ) would be less than $25.00."

When I look at the actual dividend history, I see that DFN has consistently paid dividends of $0.10 per share every month since inception -- including 2008 & 2009 when the markets were so unsettled.

I also note that DFN shares have traded below $15 since Jan 2008, reaching a low of %4.66 in 2008 and trading in a range of $10 - $12.50 since July 1, 2009.


My questions are:

1. Does it seem like they like have more flexibility to continue dividends than the prospectus indicates?
2. Given the this history of consistent dividends over a fairly long period, covering the scary 2008 -- 2009, why would you not consider DFN a screaming BUY?




Read Answer Asked by Douglas on August 09, 2016
Q: Hi Peter & Ryan, I'm looking to increase the technology content in my well balanced portfolio and was thinking of adding to existing positions in either DH Corp or Evertz Technology. I see they yield about the same, which would you add to right now keeping in mind I love companies who regularly increase their dividends. Thanks. Mario.
Read Answer Asked by Mario on August 09, 2016
Q: The proverb about our hometown life giant goes …
“ don’t buy Great West Life's funds, just buy their stock "

This WAS a "put-away stock” ( added to through the decade ) .
Now our investment has been seriously eroded due to my non-reaction to Brexit.
Listening to David Baskin’s comments on bonds and lifecos , perhaps I should trim the sector anyways .

Does one sell GWO here , or is the plunge an over-reaction that we should ignore ?

Thanks you
Read Answer Asked by Thomas on August 09, 2016
Q: I had asked the a previous question with two companies but unfortunately the response to the other company was not received as something happened. However the other company I wanted to know about was called Greenspace Brands Inc (CA;JTR). Can you please comment if this is a good company to buy at current prices. Thanks
Read Answer Asked by Imtiaz on August 09, 2016
Q: I noticed you believe that the industrial and info tech sectors should be a focus in one's growth portfolio at the current time. Please give me your top 3-4 companies in each sector that you think would provide a nicely balanced sector representation in both the industrial and info tech sectors. As always, thanks in advance for your much appreciated guidance.
Read Answer Asked by Les on August 09, 2016
Q: Hello, please give me suggestions for a few(4-5) income stocks with moderate risk, for a long term hold in a TFSA account. A response to a gentleman last week included a suggestion of Enbridge (which has spiked up impressively over the last two weeks, and now am afraid too expensive to buy, I already own all banks Slf, Wsp, ppl, Alta gas, Manulife amongst others.

I am looking for names, preferably with Current attractive entry points. Any sector.

Many thanks
Read Answer Asked by Amir on August 09, 2016
Q: Good morning Peter, Ryan, and Team,

Apparently Enron has reared its ugly head once again. This article from the Globe and Mail describes a lawsuit announced by the Alberta government:

http://www.theglobeandmail.com/news/alberta/e-mails-reveal-how-albertas-enron-clause-was-orchestrated/article31303953/

From the article, "The court action names Enmax; TransCanada; and Capital Power. It also names electricity generator Atco Ltd., the Balancing Pool, which is a public body, and its own power regulator as defendants. The court case is slated for November."

Enmax isn't a publicly traded company, but the other two are. (I don't own either). Are there any other companies that may be impacted from the fallout that will occur from this lawsuit? I'm thinking of AQN and FTS as examples.

As always, thanks for your insight.
Read Answer Asked by Jerry on August 09, 2016
Q: I bought enerflex when it went down, thinking it would pop back up and i would sell it. It took a bit of time but i finally have a ptrtty good profit from it. At the time i asked a question about efx and you said that if there was a sustained turnaround it might be interesting. Do you think it might be worth waiting to see whether this is that sustained turn around? Or, should i take my profit and run?
Thanks Peter, Ryan and team
Read Answer Asked by joseph on August 09, 2016
Q: Mfc1192. I purchased this at around 50 per share 10yrs ago and had been under water since. It is now near 70. What would ur opnion be to continue to hold thru the seasonal strenght a little longer and maybe sell half or all and would there be a better or less expensive alternative?
Read Answer Asked by Marcel on August 09, 2016
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