FFN & DGS: SPLIT Share Funds with CRAZY 21%+ Yield | Should you Invest?

Should you invest in FFN right now at 19% Dividend Yield & DGS at 21% Dividend Yield??

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So should you invest in FFN right now?
https://www.quadravest.com/ffn-fund-f...

It's Pure Financials exposure. But It has the Top U.S. and Canadian Financial stocks, so the quality is definitely there.. If you feel that these Financial Stocks will remain stable for the next little while, which could definitely be the case. Then it could definitely be worth it and highly rewarding with that huge Yield.

BUT if there's a market correction, or worse, another crash. We all know what goes down first right? Financial stocks. So you can expect to miss a few dividends during those market cycles.

My personal opinion on FFN?
Well, I think that considering

The current UNIT NAV is just over 16$, so pretty close to that 15$ threshold
And that It does miss Dividends fairly often during bad market cycles

I would rather invest in FTN instead. Of course you won't get the same dividend Yield, you will get a little over 13% instead of 19% but FTN’s UNIT NAV is way stronger than FFN at over $20 now. This is because they had an aggressive Share PRICE Consolidation back in December 2020.

The strength of the UNIT NAV is important because if another crash happens, like in 2008 or March/April 2020, FTN has a lot more leeway than FFN not to go under $15 UNIT NAV.

Also, they pretty much have the same holdings. So I personally prefer FTN over FFN as a safer option but with less Yield

Now if you really don't want to deal with the $15 UNIT NAV Threshold rule that Split Funds have you can invest in the Income Financial Trust (INC.UN). This is an Income fund also managed by Quadravest but its not a SPLIT Fund. It is one of my favorites when it comes to Pure Financials exposure. It holds a lot more companies than FFN or FTN and it has a unique Dividend policy where they always target a 10% Yield based on the share price.

Should you invest in DGS?
https://www.bromptongroup.com/product...

DGS just crossed the 15$ UNIT NAV threshold and the Yield on it is over 20% which is mind blowing.

Well this one also can of course be a great pick up right now. Unlike FFN , it's more diversified, and has a lot more stocks, primarily in Canada..

But like we saw, this one also has a history of missing dividends in bad economic times which is common for high yielding Split Funds. I feel that this Split Fund is a bit more tempting than FFN because of its diversification.

I don't own it myself yet, but i'm definitely thinking about it. Finally this month, it passed the 15$ UNIT NAV threshold so the dividend SHOULD BE re-enabled. The last time it paid the dividend was February 2020 just before the COVID 19 Crash.

I like the fact that it includes that Global Dividend ETF which gives it some added diversification.

BUT i'm still hesitant for the simple reason that DFN (Dividend 15) by Quadravest looks like a better option overall to me right now.


Disclaimer:
Not a licensed investment advisor, videos are educational.
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