GDV IS A $126M Class A split share, trading now at a 6% premium to net asset value. Five year annualized return is 6.2%. It is down 15% YTD and lost 4.7% last year. Indicated yield is very high at 14%+, due to the leveraged nature of split shares. Unlike many split share corps., it has never omitted its dividend, but has only been around since 2018. Under these structures, if unit NAV (preferred and class A) falls below $15 then no dividends are paid. Right now NAV per unit is $17.79 (as of Nov 3) so there is a decent cushion here. Overall, it is one of the better split share funds, in our view. But we would keep in mind that the high yield is offset somewhat by weak share price growth (14% yield but 6% five year return). Its holdings are nothing unusual. We think a straight equity ETF such as VIG would outperform this, but from a total return basis (not just yield). Its five year return is 10.26%, even more if we adjusted for currency moves (it is US traded). Canadian traded VFV has a 12.1% 5-year return.
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