I’m glad you learned and made money 😉 but I would never suggest to only “ stick with me” . It’s always best to keep learning different strategies and viewpoints. It’s he’s not to love passive income
@@PassiveIncomeInvesting Absolutely, I do have individual stocks, but I find their stock picks not performing very well (at least till now, I know it's a long game), stock markets are at record highs, total returns will be less favorable compared to passive income / covered calls.
@@aidamenzel2475 Their stocks are not the best either, I don't just go by their picks, but for the ones I did, I am not in a very good position right now.
Thanks! My husband and I are working our way through your videos. We really, really appreciate all of the information you/your wife impart...and the time involved.
Thank you so much. I have spotted split funds for years now. I have tried to understand them from website and I never was able. This video made it all clicks for me. Thanks a lot again!
I watched Mark's video on Brandon's channel and we had a chat about it in their discord and I was happy to have an opinion on Split corp. from someone who's in the growth industry. On the flip side I'm even more happy that you did a new video on them as well so we can have a POV from someone in this industry. Both opinions are on both end of the spectrum and are very interesting. The lesson from both video is that you need to learn your strategy before investing. I switched from growth to income because like you I want to enjoy life more. I never been a fan of retiring at 65. If I have to retire at 65 for whatever reason it's going to be a hell of a journey! I have to say that your strategy can be scary because it looks complicated but after 6 months now I can tell that it's nothing different than any other style of investing. Thanks for the content!
normally the issuing company will buy back the preferred shares at the end of their five-year term. Of course, you don’t have to tender them back to the issuing company after the term is up as the company will reset the rate prior to the maturity date and you can simply take the new rate if you want to hold on to your shares. It is your choice, which is a key difference from traditional rate-reset preferred shares in Canada. above i read in Article, Question is Buy back in what Rate 10$ or 15$?
Liked, will share with relatives too. Appreciate the 10 hours work. I learned about the importance of diversification in a split fund. Good to know you remain focus on buy hold passive income strategy which I find easier to do and less stressful than growth.
Question about ROC. I watched your video explaining the nature of ROC for covered calls ETFs (essentially that it's not real ROC, but rather a reclassification of profits made from premium for tax purposes and that it does lower you cost basis(does not matter if it's in a registered account)). I also watched a video about split share funds by Brandon Beavis Investing. He was showing how a major proportion of the distribution is made of ROC and said that they're basically giving you back your money because they can't sustain such a high dividend. I'm wondering if split shares yield is made of bad ROC essentially.
Usually the most hated stocks on the market will offer superior returns. That said I am not that bullish on bank and insurance companies so dgs and Rs and be a nice combo.
I think it should be noted that in case of termination, there's a possibility for class A shares to get 0$ as per the prospectus. I know it's a very slim chance, but it has to be said. Edit: if the fund terminates, class a share holders will get the lower of i)the NAV minus 10$(going to preferred shares) or i)nil (if the NAV is lower than 10$ then you get nothing).
The NAV is way lower than the market price right now for GDV and LBS (like 1.5$ to 2$). Do you wait that the NAV and market price are closer to buy? Seems like that large gap is gonna takes months to recuperate in distribution.
if the assets that they hold crash 50% does that mean that if i hold a shares im gonna bust go to 0 and lose everything? no one as ever been able to answer this.i dont mind it going low, even really low, because it could always get back, but busting is another game entirely
This is the first video by you I have watched and I have already subscribed to your channel. I have some Split Share Corporations in my portfolio, but was a bit unsure because they seem to be mostly disliked. You seem to be rather alone in your opinions, but I share them and will stick to my investments, probably add some new split shares. Still unsure, but less so... Keep on the good work.
I do find a use for the preferred shares of a split fund -- use it as a super high yield saving account/bond replacement for speculative cash. Not only will your money be sheltered from the market volatility, but also extremely tax efficient than bank interests. I always keep >10% of the cash in case of a market crash.
Factor in the dividends then come back to me . I rather lose value and make 7%/ year than not lose value and make nothing . Also it’s mostly roc income . I said my peace ! The rest is up to you
@@PassiveIncomeInvesting I store my speculative cash in the form of preferred shares in a registered tax free account, what does tax treatment has anything to do with it? Even in a cash/margin account, the dividends from the preferred share are qualified as eligible dividends as opposed to regular income at full marginal tax rate, so what gives?
Roc lowers acb , so if it goes down a bit. , it will make up for it if your using it as a way to store cash . That’s what I meant , just a small detail but in the end you can of course do whatever makes you feel most comfortable.
Enjoyed this informative video - Thanks Adrian. With your style of investing, one can easily make between 8 -10% in dividends. Is there a down side to borrowing at 2.45% from line of credit and investing this money?
Hi Adrien, great explanation to these split corp funds. Question if a class A share was sold. I know you are focused on holding for the long term but when a class A share is sold would it pay market price or Nav price? And do you mean the management fee is withheld when the dividend is paid so we never see anything withheld? Not understanding when that fee gets paid. Thanks for your knowledge!!
Adrian, why would you choose split share corps vs simply picking a diverse group of stocks with decent dividend yield and selling covered calls on them? The return is likely higher.
Did I hear and understand correctly that split share class A’s are tax advantageous because a portion of the dividends could be ‘return of capital’? Hopefully WealthSimple gets that paperwork right for me lol.
You been a great channel bud. Helped me buy another Split corp after I had one (LBS, DFN, etc). I know we need to look for more $15 NAV Unit but whats an ideal amount for us to be satisfied that danger wont be near? $16-18
So far at the 20 minute mark and....Getting caught up on your channel having subscribed weeks ago. Hey! I knew about the 15 dollar Unit NAV but it was not explained as clearly as you have done. Cool! It is the combination of the price of both preferred and class A....so neat to learn stuff on investing so to make the next best decision. Thanks Adrian.💯👍
Thank you for the informative video. In your opinion, why does SBC have a relatively small market cap ? It has only missed 4 dividends payments in over 17 years, and is one of the rare examples of a split share fund where there has been capital appreciation since inception. Thank you.
Hi Adrian, I have some questions related to the NAV; do you only buy funds which are at a premium ? and do you sell at a certain percentage higher than the NAV? Thanks, Danick
How do you derive at the $15 threshold? If each fund is originally issued at $10, I would think that the threshold would be the $10 issue price of the Preferred Share fund
Hello Adrian, can you tell me if my RSP or TFSA is maxed out can I reinvest the dividends in it/them or do I have to take out the dividend and re invest it the following Year, Thanks Happy New Year.
Why all class A shares of any (or almost any) split fund decline in value over long term. If you extrapolate DFN or DGS or any split funds' trajectory into the future, looks like all of them will ultimately become worthless in the long term. The question here is how viable is the long-term holding strategy?
There's such a thing as income growth. In other words, you go for the highest and safest dividends and reinvest some or all of them to create income growth. In fact, to account for inflation you have to grow your income.
Do you know if the more diversified split share funds like GDV, DFN or RS would change the stocks they invest in over time or do they need to basically stick with what they started with?
I see at the end you discussed what we talked about...important for people to hear. Our differences in investing strategy are rooted simply in our monthly expenses. I don't know how you keep your expenses so low. Mine are probably 3-4 times yours. Different strokes for different folks I guess.
I actually had a consultation with a couple who did exactly that in Toronto. Now they have a 1 million cash cow income portfolio and are pretty much financially free . Can’t remember their age , but I think like mid -late 20s
Also wondering if you''re able to make a video about paying your taxing, specifically for your circumstances (Retired early and living off dividends). Like how would that work exactly, because I'm currently reading on some taxes in Canada and from what i assume, we have some good dividend tax credits. How would ROC, capital gains, and dividends work? I'm specifically interested in ROC, since there isn't much info on it. I could be totally wrong about this but as an example: if a split share fund is paying a dividend/distribution ($0.1) that is 60% ROC and 40% dividend, would you put and only pay your taxes for the dividend, eg. you're only paying for $0.04 per distribution? Any information and/or video made ;)) is greatly appreciated!
SBC announced a split which means unit NAV will decrease and its not really well diversified as it holds 6 big banks. Let's say if you don't hold SBC yet which will you buy SBC or BK?
Great question, I’ll discuss it in the next pick of the month video 😉 but the led answer is there both good . I never said non diversified isn’t good , it depends what’s in there right ? . I don’t think the nav will decrease .
I'm holding BK and after the big div increase announced on Nov 15th I'm keeping a close eye on it as it may start eating into the capital as part of its redistribution. But I think it will still be good while we go through the bank div increase announcements.
No . Ens does whatever enb does . The offering is because the fund is STILL trading at a premium to NAV . If I owned the fund I would do the same thing . Dont loose sight of the strategy . Stock price doesn’t matter . The monthly dividend is all that matters
I like your videos so I decided to sign up. It wasn't easy & sign up popup page keep popping up. I thought I signed up, now it is telling me wrong password. So I gave up altogether.
If the split fund terminates we get paid back the NAV I understand, but what if we're are also down (unrealized loss) on the split fund when it terminates. Does that mean we got to take the loss as well? E.g. im down $61 on DGS so does that mean I'll be taking that loss with me if the fund terminates? Thanks
@@PassiveIncomeInvesting ok waiting patiently. Also starting to have dividends being deposited to my TFSA...thank you so much!! Glad i dont have to pay tax on that income :-)
Hi Adrian, I’m a Little concerned with GDV. Brompton has completed 3 offerings in 4 months. It seems like they are driving the price down to pay the yield. This is not healthy that they keep diluting the share holders every month or 3 months in the past 4 months.
Hi Adrian, thanks again for the video, question for you is here such an animal as a USD denominated Canadian listed split share etf? The reason being I want to generate USD while not having it treated as all foreign income (it will be held in my USD margin account)
Amazing! thank you for sharing, it revolutionizes the idea I had of investing! I wonder though how split share funds make money considering the low share prices (class A shares) and the high div yield they propose? example: ENS (class A share price: ~16.25 cad and ~9.5% div yield) vs regular ENBRIDGE stock (~share price 58.48 cad and 5.88% div yield).... it looks too beautiful to be true!😅
Nothing to be concerned about. These funds are meant to buy & hold, therefore trading volume is low and the reason why some aren't on WS . But you can send a request to WS on their website asking to add a fund to their platform. Many members of our Facebook group did this and successfully added QYLD and I believe RS and another one I can't think of atm.
Hi Adrian, RS announced an overnight offer to sell shares below the nav price at $19.05 on the class A but said it would not dilute the shares. Noticed the price went down. Will this present an opportunity in your opinion to buy more with this lower price as the sale goes through on Feb 9th will you be buying more now are waiting for a lower price ?
Fantastic video Adrian! Really appreciate all the work you and your wife put into all your videos. Your channel has changed my investing life, and made my life so much easier with much less stress, time, and work required to keep up with the market! Keep up the great work!
Would "Overnight Right Offering" be considered as sudden price drop for Class A share here? I meant it does provide investor lower entry point and higher dividend yield but it also drag the price closer to the Unit Nav price, take FN for example. Maybe another video to cover the overnight offering some other time?
Hi Adrian, i saw a note you sent on Brompton SBC and something about a 25% of something. Tried clicking the link and i lost the thread. Their x dividen date is the 29th and am going to by some shares. Would mind explaining that again to me? Thank you again for all you do for us!
lower unit nav , or class a nav = higher risk , as it’s closer to 15$ so less leeway when a crash comes . There’s no real logic behind it , it’s just the way these funds are . It’s more of an observation per say
@@PassiveIncomeInvesting yes apparently. I am still learning so was wondering if this will affect the dividends you speak about that have energy sectors in them
Well they basically follow oil prices . I would never invest in any of those stocks individually . These are volatile , cyclical stocks . I much rather own nxf for oil and gas stocks and zwu , ens , hutl for the pipelines . Also many Canadian focused funds will have slot of energy in them , like zwc , or eit
So... in a massive say 40% market correction, your portfolio will drop by 80% and lose all your dividends until market recovers? Is that correct? Or..?
Also, I'm guessing buying these split funds after a crash, even though you would not be getting a dividend as it was below 15$, could potentially be a very good time to buy as you would also capture the gains of the A class shares as it builds back up to that $15 dollar point?
Did you make any videos during the March crash that showed the effects on your portfolio so we can see how that looks to a split fund portfolio in real time?
Hey Adrian, in times like this (Market crash) do you worry about your split funds ? I’m just asking the question but I’m not over exposed. I only hold them in my TFSA and makes up less then 10% thanks Rob
@@PassiveIncomeInvesting are you buying on the dip or watching and waiting ? Just want to know your strategy in this dip. I’ve held off all day and last Friday the only thing I picked up was some GDV. Thanks Rob
Adriano, thank you for another gem of a video. Respect to you. I have an idea for another video for you if you are interested. Could you show us how to calculate / estimate the NAV of a split fund. Not the Unit Nav but the day to day NAV. Thank you for your consideration.
Thanks for the feedback . I don’t really see how you can do that bud , plus what’s the point ? There usually updated every couple of days or max 2 weeks in their websites like I showed
As far I could tell , they don’t exist . They have plenty of leverages and covered call funds designed for income however . The goal is always the same … income . Check out my playlist on us funds
Super informative video! Thanks Adrian. I had question regarding Non registered account taxation. Let's say I invested DFN in non-registered account. Do I get taxed on dividends or only on capital growth? Or on both?
The sources of income can change monthly . There will be some eligible dividends for sure as they are all Canadian companies , the rest will be capital gains or roc. You find the breakdown on their website
I just hit the like button. Love your videos Adrian. Quick question for you Adrian. I know you said no right or wrong way to invest but do you think holding too many funds can get me in trouble? I have 20 funds. 12 are ETF’s 2 split funds and 6 single companies spread out over 2 TFSA about $13;000 in each fund . My average yield is 7.25% about $1,700 a year
@@PassiveIncomeInvesting good question Adrian That’s why I always wondered why most people will say you should only have 6 or 10 or 12 funds. Maybe because to many funds is harder to watch. But if we’re buy and hold who cares
@@PassiveIncomeInvesting what is the date SBC will be adding the stocks since the split happened yesterday I still did not receive my free stocks ? And are you adding more at the lower price ?
It’s done already but when you get it depends on your broker . I use td and still did not get them . Don’t think I’ll add more right now as I have a lot invested in the big banks already
Great video Adrian - thank you! I'd be interested in your thoughts on a 'safe' Split-Fund (ie. GDM) vs. an Income Fund (ie. EIT) where-in both yield approximately the same. Would the consideration then be the underlying assets? Or are there other factors to consider. Thanks again for your wonderful channel!
Between you and Investing Academy, I choose you Adrian, I learned a lot and made a lot of money from your style of investing.
I’m glad you learned and made money 😉 but I would never suggest to only “ stick with me” . It’s always best to keep learning different strategies and viewpoints. It’s he’s not to love passive income
Me too. Investing Academy was lately pretty negative to Split Share Funds.
@@PassiveIncomeInvesting Absolutely, I do have individual stocks, but I find their stock picks not performing very well (at least till now, I know it's a long game), stock markets are at record highs, total returns will be less favorable compared to passive income / covered calls.
@@aidamenzel2475 Their stocks are not the best either, I don't just go by their picks, but for the ones I did, I am not in a very good position right now.
@@PassiveIncomeInvesting I love your straightforward honesty.
The best work Adrian and Erica that is why I like your channel. Happy to be part of your channel. All the best. Super like this video.
Thanks! My husband and I are working our way through your videos. We really, really appreciate all of the information you/your wife impart...and the time involved.
Happy to help!
Thank you so much. I have spotted split funds for years now. I have tried to understand them from website and I never was able. This video made it all clicks for me. Thanks a lot again!
Happy to help!
A lot of work went into this, congrats!
I’m glad that you took a new look at Split Share funds. Keep up the great wok.
TFSA just announced its contribution limit for 2022 and it is another 6,000$ wooo! 👍81,500 now
I watched Mark's video on Brandon's channel and we had a chat about it in their discord and I was happy to have an opinion on Split corp. from someone who's in the growth industry. On the flip side I'm even more happy that you did a new video on them as well so we can have a POV from someone in this industry. Both opinions are on both end of the spectrum and are very interesting. The lesson from both video is that you need to learn your strategy before investing. I switched from growth to income because like you I want to enjoy life more. I never been a fan of retiring at 65. If I have to retire at 65 for whatever reason it's going to be a hell of a journey! I have to say that your strategy can be scary because it looks complicated but after 6 months now I can tell that it's nothing different than any other style of investing. Thanks for the content!
normally the issuing company will buy back the preferred shares at the end of their five-year term.
Of course, you don’t have to tender them back to the issuing company after the term is up as the company will reset the rate prior to the maturity date and you can simply take the new rate if you want to hold on to your shares. It is your choice, which is a key difference from traditional rate-reset preferred shares in Canada.
above i read in Article, Question is Buy back in what Rate 10$ or 15$?
Liked, will share with relatives too. Appreciate the 10 hours work. I learned about the importance of diversification in a split fund. Good to know you remain focus on buy hold passive income strategy which I find easier to do and less stressful than growth.
You got it buddy ! 😉
Amazing video ..... thank you so much!
This is very educational. Thanks Adrian for making this video and sharing your knowledge. 🙏🏼
So much good info! Instant like!
Watched and liked, thanks Adriano!
I finally finished watching this video. Once again, a great video worth every second watching it. Thanks again Adrian!
just a simple Thank You Sir.
Question about ROC. I watched your video explaining the nature of ROC for covered calls ETFs (essentially that it's not real ROC, but rather a reclassification of profits made from premium for tax purposes and that it does lower you cost basis(does not matter if it's in a registered account)).
I also watched a video about split share funds by Brandon Beavis Investing. He was showing how a major proportion of the distribution is made of ROC and said that they're basically giving you back your money because they can't sustain such a high dividend.
I'm wondering if split shares yield is made of bad ROC essentially.
High value video, Adrian. Lot of work and research to make it. I really appreciate. Thanks.
Thanks 🙏
Useful information. Thank you Adrian!
Usually the most hated stocks on the market will offer superior returns. That said I am not that bullish on bank and insurance companies so dgs and Rs and be a nice combo.
It’s good to be bullish on everything if you ask me ! 😉
Great conception about living style. I hope to put 10 like buttons, if I could.
I think it should be noted that in case of termination, there's a possibility for class A shares to get 0$ as per the prospectus. I know it's a very slim chance, but it has to be said.
Edit: if the fund terminates, class a share holders will get the lower of i)the NAV minus 10$(going to preferred shares) or i)nil (if the NAV is lower than 10$ then you get nothing).
Love this content.. joined the group and have subscribed and started on my path to long term investing... love the PII family!
Thanks man welcome aboard 😉
You explain perfectly Adriano.
Cheers, my passive monthly income is getting bigger every month!
All because of you.
How to track total return on split shates and high yeild etf and closed end fun?
OSP dividend came back to life this December
Could be dead again soon
The NAV is way lower than the market price right now for GDV and LBS (like 1.5$ to 2$). Do you wait that the NAV and market price are closer to buy? Seems like that large gap is gonna takes months to recuperate in distribution.
Brilliant Info, appreciate it!
if the assets that they hold crash 50% does that mean that if i hold a shares im gonna bust go to 0 and lose everything? no one as ever been able to answer this.i dont mind it going low, even really low, because it could always get back, but busting is another game entirely
This is the first video by you I have watched and I have already subscribed to your channel. I have some Split Share Corporations in my portfolio, but was a bit unsure because they seem to be mostly disliked. You seem to be rather alone in your opinions, but I share them and will stick to my investments, probably add some new split shares. Still unsure, but less so... Keep on the good work.
I do find a use for the preferred shares of a split fund -- use it as a super high yield saving account/bond replacement for speculative cash. Not only will your money be sheltered from the market volatility, but also extremely tax efficient than bank interests. I always keep >10% of the cash in case of a market crash.
True , but I would still prefer something like Zpw or zpay for that purpose
@@PassiveIncomeInvesting ZPW has lost its value >20% since inception. I wouldn't call that a saving account alternative...
Factor in the dividends then come back to me . I rather lose value and make 7%/ year than not lose value and make nothing . Also it’s mostly roc income . I said my peace ! The rest is up to you
@@PassiveIncomeInvesting I store my speculative cash in the form of preferred shares in a registered tax free account, what does tax treatment has anything to do with it? Even in a cash/margin account, the dividends from the preferred share are qualified as eligible dividends as opposed to regular income at full marginal tax rate, so what gives?
Roc lowers acb , so if it goes down a bit. , it will make up for it if your using it as a way to store cash . That’s what I meant , just a small detail but in the end you can of course do whatever makes you feel most comfortable.
Enjoyed this informative video - Thanks Adrian. With your style of investing, one can easily make between 8 -10% in dividends. Is there a down side to borrowing at 2.45% from line of credit and investing this money?
I get this question all the time … if you understand the risks and are perfectly fine with them , then go for it . Mathematically it makes sense
I'm thinking of adding covered call split funds in my portfolio 🤔
Thank you for another great video.
Great content
Hi Adrien, great explanation to these split corp funds.
Question if a class A share was sold. I know you are focused on holding for the long term but when a class A share is sold would it pay market price or Nav price? And do you mean the management fee is withheld when the dividend is paid so we never see anything withheld? Not understanding when that fee gets paid. Thanks for your knowledge!!
Thank you for all your good videos . Merci beaucoup!
What is Termination Date means? On that date what happens to Split shares?
Watch the video ?
Adrian, why would you choose split share corps vs simply picking a diverse group of stocks with decent dividend yield and selling covered calls on them? The return is likely higher.
you could, but my channel is called PASSIVE income investing for a reason :)
That was brilliantly explained, thanks Adrian
Thanks 🙏
@@PassiveIncomeInvesting I bought your spreadsheet and I like how you suggest an ETF alternative.
Glad you like it , more upgrades coming next version !
if the NAV drops by 50%, A shares will be worthless right? example is Brompton Oil Split Corp which is at zero NAV
Yes. I discuss it in the video 😉
What's the difference between Dividend 15 and Dividend 15 II? Looks the same but they have different charts and prices.
The class a shares are leveraged more with 2 and 2 has less aum . I would stick with 1
What amazing information you have shared. Thank you so much in teaching me to be a better investor
Glad it was helpful!
Did I hear and understand correctly that split share class A’s are tax advantageous because a portion of the dividends could be ‘return of capital’? Hopefully WealthSimple gets that paperwork right for me lol.
Yup , don’t worry they will lol you get a t3 for each fund like with everything else
Here we go
You been a great channel bud. Helped me buy another Split corp after I had one (LBS, DFN, etc). I know we need to look for more $15 NAV Unit but whats an ideal amount for us to be satisfied that danger wont be near? $16-18
only you can figure that out for yourself :) welcome to DIY investing
So far at the 20 minute mark and....Getting caught up on your channel having subscribed weeks ago. Hey! I knew about the 15 dollar Unit NAV but it was not explained as clearly as you have done. Cool! It is the combination of the price of both preferred and class A....so neat to learn stuff on investing so to make the next best decision. Thanks Adrian.💯👍
Happy learning ! Check out my playlists , i try my hardest to classify my videos in proper playlists
@@PassiveIncomeInvesting OK, another organizational skill you have which adds to the quality of your presentations and channel. Awesome!
Thank you for the informative video. In your opinion, why does SBC have a relatively small market cap ? It has only missed 4 dividends payments in over 17 years, and is one of the rare examples of a split share fund where there has been capital appreciation since inception. Thank you.
TO ME 355 million in assets is not small for a Canadian fund
@@PassiveIncomeInvesting Yes, that is true, however it is small in comparison to LBS and DGS
Hi Adrian, I have some questions related to the NAV; do you only buy funds which are at a premium ? and do you sell at a certain percentage higher than the NAV? Thanks, Danick
I buy with the intention of never selling . And it’s funds trading at a discount that are attractive, not at a premium
How do you derive at the $15 threshold? If each fund is originally issued at $10, I would think that the threshold would be the $10 issue price of the Preferred Share fund
Hello Adrian, can you tell me if my RSP or TFSA is maxed out can I reinvest the dividends in it/them or do I have to take out the dividend and re invest it the following Year, Thanks Happy New Year.
Of course You can reinvest !
Why all class A shares of any (or almost any) split fund decline in value over long term. If you extrapolate DFN or DGS or any split funds' trajectory into the future, looks like all of them will ultimately become worthless in the long term. The question here is how viable is the long-term holding strategy?
I cover this misunderstood question in many videos including the q and a with Michelle , head of Brompton split funds
There's such a thing as income growth. In other words, you go for the highest and safest dividends and reinvest some or all of them to create income growth. In fact, to account for inflation you have to grow your income.
I actually do both.
Can you add sample rrsp portolios to ur day package, or do you recommend using the ones already there for an rrsp. Thanks
You can use portfolio 1 in the u.s. tab
Adrian, Split share distributions showing as Interest not dividends on my BMO investorline account?
Its not interest … trust me
Do you know if the more diversified split share funds like GDV, DFN or RS would change the stocks they invest in over time or do they need to basically stick with what they started with?
They change them based on market conditions.
They can change but the theme of the fund remains the same
i think you are wrong about preferred shares and class a share about when company goes bankruptcy
I see at the end you discussed what we talked about...important for people to hear. Our differences in investing strategy are rooted simply in our monthly expenses. I don't know how you keep your expenses so low. Mine are probably 3-4 times yours. Different strokes for different folks I guess.
No kids 😎
How can you tell if they are sold at a discount ord premium?
Check the nav vs stock price .
great point about total return Adrian .. like Real estate its only paper gains .. who is selling their house now at a peak ?? LOL . no one ..
I actually had a consultation with a couple who did exactly that in Toronto. Now they have a 1 million cash cow income portfolio and are pretty much financially free . Can’t remember their age , but I think like mid -late 20s
@@PassiveIncomeInvesting glad to hear someone is smart ..
Oh they were . Now there laughing
Also wondering if you''re able to make a video about paying your taxing, specifically for your circumstances (Retired early and living off dividends). Like how would that work exactly, because I'm currently reading on some taxes in Canada and from what i assume, we have some good dividend tax credits. How would ROC, capital gains, and dividends work? I'm specifically interested in ROC, since there isn't much info on it. I could be totally wrong about this but as an example: if a split share fund is paying a dividend/distribution ($0.1) that is 60% ROC and 40% dividend, would you put and only pay your taxes for the dividend, eg. you're only paying for $0.04 per distribution? Any information and/or video made ;)) is greatly appreciated!
Watch my 2 tax videos bro … especially the second one .
SBC announced a split which means unit NAV will decrease and its not really well diversified as it holds 6 big banks. Let's say if you don't hold SBC yet which will you buy SBC or BK?
Great question, I’ll discuss it in the next pick of the month video 😉 but the led answer is there both good . I never said non diversified isn’t good , it depends what’s in there right ? . I don’t think the nav will decrease .
I'm holding BK and after the big div increase announced on Nov 15th I'm keeping a close eye on it as it may start eating into the capital as part of its redistribution. But I think it will still be good while we go through the bank div increase announcements.
Agreed
Hi Adrian. Do you have any comments on the recent "Overnight Offerings", and the significant drop in value of ENS?
No . Ens does whatever enb does . The offering is because the fund is STILL trading at a premium to NAV . If I owned the fund I would do the same thing . Dont loose sight of the strategy . Stock price doesn’t matter . The monthly dividend is all that matters
@@PassiveIncomeInvesting Thank You! :)
I love your videos. Are there any split share corporations for REITs I imagine there would be huge dividends on something like that?
Rs ! I have a video on it 😉
I like your videos so I decided to sign up. It wasn't easy & sign up popup page keep popping up. I thought I signed up, now it is telling me wrong password. So I gave up altogether.
reset your password? or email us for help? why give up so quickly. i can reset it in 5 seconds fr=or you
Return on capital: is that the fund selling assets to cover the dividend? Or just a different way to give out money?
Watch my roc video and the new one coming soon 😎
If the split fund terminates we get paid back the NAV I understand, but what if we're are also down (unrealized loss) on the split fund when it terminates. Does that mean we got to take the loss as well? E.g. im down $61 on DGS so does that mean I'll be taking that loss with me if the fund terminates? Thanks
You get the nav price . If your book cost is lower than the nav price , the difference between the two would be your capital loss .
This was sooo informative. Thank you for all the hard work you put into your videos.
When is your next portfolio review?
Cheers!
Real soon !!!
@@PassiveIncomeInvesting ok waiting patiently.
Also starting to have dividends being deposited to my TFSA...thank you so much!! Glad i dont have to pay tax on that income :-)
You’re welcome . The tfsa is the biggest gift the government will be ver give you .
Hi Adrian, I’m a Little concerned with GDV. Brompton has completed 3 offerings in 4 months. It seems like they are driving the price down to pay the yield. This is not healthy that they keep diluting the share holders every month or 3 months in the past 4 months.
I’m not … offerings are good , they don’t dilute anything . It’s a myth . I spoke about it with middlefield , did you watch the video ?
@@PassiveIncomeInvesting I just watch again Thanks
Did you buy clm at 13?
Don't buy it at all, look at the dividend history, declining the whole time.
@@1JJONES top hold for this channel, learn a bit before throwing out opinions.
Still a steep premium … but Better than 40% lol
Ummm , the dividend just got a huge increase for 2022 …. 💩
@@PassiveIncomeInvesting flipped half for 5% gain, can't help myself lol
Thank you!
Adrien do you know the Name of the Splitshare Fund that has no 15$ Rule?
Pic . A . I talk about it in my recent “top banks etf “ video
appreciate the work you did on this video well done also Brandon dad explained split funds very well
Hi Adrian, thanks again for the video, question for you is here such an animal as a USD denominated Canadian listed split share etf? The reason being I want to generate USD while not having it treated as all foreign income (it will be held in my USD margin account)
Not that I know of , sorry 😞
@@PassiveIncomeInvesting thanks Adrian!
Thinking of buying into Inc.un should I wait or buy now? It seems quite over priced atm
I say wait for inc.un . Go look at the nav on their website and let me know what you think lol
Amazing! thank you for sharing, it revolutionizes the idea I had of investing! I wonder though how split share funds make money considering the low share prices (class A shares) and the high div yield they propose? example: ENS (class A share price: ~16.25 cad and ~9.5% div yield) vs regular ENBRIDGE stock (~share price 58.48 cad and 5.88% div yield).... it looks too beautiful to be true!😅
Share price means nothing . It’s All relative to the dividend rate
For my Canadian investors, a lot of split Corp etf are not available on Wealth Simple, for example YCF (commerce bank) be very careful.
Nothing to be concerned about. These funds are meant to buy & hold, therefore trading volume is low and the reason why some aren't on WS . But you can send a request to WS on their website asking to add a fund to their platform. Many members of our Facebook group did this and successfully added QYLD and I believe RS and another one I can't think of atm.
Hi Adrian, RS announced an overnight offer to sell shares below the nav price at $19.05 on the class A but said it would not dilute the shares. Noticed the price went down. Will this present an opportunity in your opinion to buy more with this lower price as the sale goes through on Feb 9th will you be buying more now are waiting for a lower price ?
Overnight offerings are ALWAYS a buying opportunity!
How do I sell by myself options
I don’t know … never done it
Hey Adrian what is the news on SBC today as the stock went up on this news
Made a Facebook post on it 😉
@@PassiveIncomeInvesting oh man I don’t use Facebook LoL sorry Is it good news for a SBC holder like you and me ?
Yes it’s great news ! We will get about 25% more shares for free thus increasing our income by 25%
Fantastic video Adrian! Really appreciate all the work you and your wife put into all your videos. Your channel has changed my investing life, and made my life so much easier with much less stress, time, and work required to keep up with the market! Keep up the great work!
Would "Overnight Right Offering" be considered as sudden price drop for Class A share here? I meant it does provide investor lower entry point and higher dividend yield but it also drag the price closer to the Unit Nav price, take FN for example. Maybe another video to cover the overnight offering some other time?
Yup that’s exactly what I said I would do in the video ! Lol
@@PassiveIncomeInvesting My bad, I might have been distracted during that segment, 😉
Hi Adrian, i saw a note you sent on Brompton SBC and something about a 25% of something. Tried clicking the link and i lost the thread. Their x dividen date is the 29th and am going to by some shares.
Would mind explaining that again to me?
Thank you again for all you do for us!
It’s a community post , you can go back to those anytime . Click on my channel link , then click on community
Great content ! Keep it up
Good one thanks
Why does lower NAV =higher yield? What is the math or logic behind that?
lower unit nav , or class a nav = higher risk , as it’s closer to 15$ so less leeway when a crash comes . There’s no real logic behind it , it’s just the way these funds are . It’s more of an observation per say
This may be slightly off topic
What do you think about the Financial Post news today on TSX energy surge?
Tsx energy surge ?? What’s that exactly ? Oil companies stocks rising ?
@@PassiveIncomeInvesting yes apparently. I am still learning so was wondering if this will affect the dividends you speak about that have energy sectors in them
Well they basically follow oil prices . I would never invest in any of those stocks individually . These are volatile , cyclical stocks . I much rather own nxf for oil and gas stocks and zwu , ens , hutl for the pipelines . Also many Canadian focused funds will have slot of energy in them , like zwc , or eit
So... in a massive say 40% market correction, your portfolio will drop by 80% and lose all your dividends until market recovers? Is that correct? Or..?
Also, I'm guessing buying these split funds after a crash, even though you would not be getting a dividend as it was below 15$, could potentially be a very good time to buy as you would also capture the gains of the A class shares as it builds back up to that $15 dollar point?
Did you make any videos during the March crash that showed the effects on your portfolio so we can see how that looks to a split fund portfolio in real time?
I have the data on Missed dividends in the annual divided cells for the split funds . Download my portfolio in my website to see it
DGS is having a public offering tonight. I believe it's $6 a share. Does this mean the price tomorrow will be $6?
It means it’s a good time to buy it tomorrow 😉
DFN distribution says 0.00 how come
??
Hey Adrian, in times like this (Market crash) do you worry about your split funds ? I’m just asking the question but I’m not over exposed. I only hold them in my TFSA and makes up less then 10% thanks Rob
Not at all , although some will be at risk of not paying . This is nowhere near a crash . Just a well deserved and needed correction
@@PassiveIncomeInvesting are you buying on the dip or watching and waiting ? Just want to know your strategy in this dip. I’ve held off all day and last Friday the only thing I picked up was some GDV. Thanks Rob
Adriano, thank you for another gem of a video. Respect to you. I have an idea for another video for you if you are interested. Could you show us how to calculate / estimate the NAV of a split fund. Not the Unit Nav but the day to day NAV. Thank you for your consideration.
Thanks for the feedback . I don’t really see how you can do that bud , plus what’s the point ? There usually updated every couple of days or max 2 weeks in their websites like I showed
How about split share funds in usa
As far I could tell , they don’t exist . They have plenty of leverages and covered call funds designed for income however . The goal is always the same … income . Check out my playlist on us funds
Super informative video! Thanks Adrian.
I had question regarding Non registered account taxation.
Let's say I invested DFN in non-registered account.
Do I get taxed on dividends or only on capital growth? Or on both?
The sources of income can change monthly . There will be some eligible dividends for sure as they are all Canadian companies , the rest will be capital gains or roc. You find the breakdown on their website
...a new fan...
:)
Please do a review of TXF
I think I did … a long time ago
Great videos as always.Thank you very much!
I just hit the like button. Love your videos Adrian. Quick question for you Adrian. I know you said no right or wrong way to invest but do you think holding too many funds can get me in trouble? I have 20 funds. 12 are ETF’s 2 split funds and 6 single companies spread out over 2 TFSA about $13;000 in each fund . My average yield is 7.25% about $1,700 a year
Hey rob , no I don’t lol . How can having more diversity get you in trouble ?
@@PassiveIncomeInvesting good question Adrian That’s why I always wondered why most people will say you should only have 6 or 10 or 12 funds. Maybe because to many funds is harder to watch. But if we’re buy and hold who cares
@@PassiveIncomeInvesting quick question why did you sell IDR when buying RS Why not keep them both ?
Most people don’t know what they’re talking about lol
Same stuff , more yield
I hate the change in the TH-cam comment section. I can never find my comment to see Adrian’s reply
What’s your question bro ??
@@PassiveIncomeInvesting what is the date SBC will be adding the stocks since the split happened yesterday I still did not receive my free stocks ? And are you adding more at the lower price ?
It’s done already but when you get it depends on your broker . I use td and still did not get them . Don’t think I’ll add more right now as I have a lot invested in the big banks already
@@PassiveIncomeInvesting Hey Adrian thanks for all your videos and advice. Wishing you a Merry Christmas 🤶
Great video Adrian - thank you! I'd be interested in your thoughts on a 'safe' Split-Fund (ie. GDM) vs. an Income Fund (ie. EIT) where-in both yield approximately the same. Would the consideration then be the underlying assets? Or are there other factors to consider. Thanks again for your wonderful channel!
I would say about the same level of safety : pretty safe . The underlying assets are always important . All blue chip