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Friday, January 28, 2011

Welcome to Financial 15 Split Corp. (FTN), 100 stocks of FTN in my online future trading brokerage

I don't like to hold too much financial stuff inside my portfolio. Bank stocks are expensive and pay a dividend yield of less than 5%. For small investors looking to maximize their investment in order to receive the highest dividend yield payment possible, bank stocks are not a good option. Yes, banks are great investments because they will gain in value over time, but their dividend yield is terribly low.

Financial 15 Split II Corporation (FTN) is a great option for small investor who want to get all the positive exposure possible to the financial sector AND received a great dividend yield payment. Taught it wasn't possible to get it all? Well, you were wrong! But now, at least, your getting to know a fantastic company, Financial 15 Split Corp. (FTN). Basically, Financial 15 Split Corp. (FTN) is a company that is extremely easy to understand: FTN had been found to provide investors the exposure to high quality financial stocks AND high dividend payment. Sound interesting?

Financial 15 Split Corp. (FTN) is a concentrate of the following companies: AGF Management Ltd., Canadian Imperial Bank of Commerce, CI Financial Corp., Bank of Montreal, Manulife Financial Corporation, Royal Bank of Canada, Goldman Sachs Group Inc., Wells Fargo & Co., Bank of America Corp., J.P. Morgan Chase & Co., TMX Group Inc., Citigroup Inc., Bank of Nova Scotia, Toronto-Dominion Bank and US Bancorp.

Financial 15 Split Corp. trades under 2 tickets: FTN and FTN.PR.A. I personally invest in FTN because the dividend payment is higher in FTN. FTN.PR.A is the preferred share of Financial 15 Split Corp. FTN pay a higher dividend than FTN.PR.A. Wonder about the dividend? If you decide, like me, to invest in Financial 15 Split Corp. (FTN), you'll earn an annual dividend of $1.5084. Financial 15 Split Corp. (FTN) dividend is being paid on a monthly basis. At this time, I don't know if Financial 15 Split II Corporation is eligible for DRIP. But I hope not. That way, for once, I will be able to enjoy the fresh cash.

I only invest in 100 stocks of Financial 15 Split Corp. (FTN) to begin with. Why? Because Financial 15 Split Corp. (FTN) is a concentrate of the financial sector. I already own many stocks of the financial sector: Sprott Inc. (SII), Bank of Nova Scotia (BNS), Davis + Henderson Corporation (DH), and, I will add it but I know its not exactly financial but its highly related, iShares S&P/TSX Capped REIT Index (XRE). Despite getting a higher exposure to the financial sector, I am happy with this new acquisition. Financial 15 Split Corp. (FTN) is being hold by the mountain lion hero himself.


Anonymous said...

Sunny, to me it's a shame your selling BNS and giving up on bank stocks, as I think it adds some reliability to your portfolio.
If you're looking for extra income, have you ever looked into options? Selling covered calls on bank stocks is a low risk way of generating extra income.

For example, BNS closed today (Jan 31) at $56.46. The March 19th call last sold at $.80. So for each 100 shares, you could make $80 of additional income with a stock you already own.

Have you ever traded options?

Sunny said...

A shame? Banks are a shame! Not me selling my extra 200 stocks of BNS (I sell another 100 today). Banks CEO are being paid millions of dollars. That's a shame! Making millions on the back of the middle class: that's a shame!

I didn't sell all of my BNS stocks despite the shame. I still have more than 100 stocks left of BNS.

What I am looking for is simple: better dividend payment. And I am getting that with the new changes brought to my portfolio.

No, I never trade options. I don't understand options.

pattirose said...

Hi there, this stock sounds really really really interesting and I think I may buy some shares. Thank you sooooo much for blogging about it. I am curious where you heard about it? Was it the Mountain Lion Man? Do you know what other stocks he likes? Because Canfor also looks good to me.

Also, if you get the chance pick up Derek Fosters new book "The Idiot Millionaire" in it he lists his current stocks which are different than before. He doesn't hold Corby anymore and he explains why.

Sunny said...

Hi Pattirose,

Yes, FTN is a stock pick of the mountain lion man, as well as Canfor. I purchase Canfor at 14.70$, and its now at more than 15$. Like WOW.

I think recent acquisitions I made bring even more diversification in my portfolio.

I purchase Corby a long time ago at around 15.35$ per stock. Its now exceeding the 17$ per stock! So no, I don't plan to sell Corby anytime soon, despite what do Derek Foster. I pick among his pick, but I prefer to hold.

pattirose said...

Thanks for answering my comment.

I've been reading your blog about 2 weeks now and love it!

I also love Derek Foster, LOL!

After I read his first book and made a few changes to my portfolio I realized I had enough $$ that I didn't have to work anymore if I didn't want to, and it's a wonderful place to be, you are well on your way young lady - congratulations!!

Anonymous said...

I see the last post here was in 2011. Have you held on to ftn all this time? Are you still holding? Do you have any further info as to how ftn is able to pay such a high yield by holding just a few financial stocks that the stocks themselves pay a modest dividend. How is ftn's yield so much higher than the underlying stocks that it holds?
thank you

Sunny said...

I, I am not holding to this stock anymore, I sold it a long time ago. The reason why I sell was exactly for its too high dividend yield. Such dividend distribution is not reasonable and not reliable.

Banks, like BNS, RBC, BMO pay a good and reliable dividend. You should never invest in a stock that pay a big juicy dividend - its a sign of a really bad inside leadership. At a point, it doesn't make sense for a business to give too much money away.

If a recession happen, or if FTN suddenly decided to reduce its distribution - it could eventually affect the value of the stock, it price could go down and what next happen? You'll lose your valuable money.

Take my word, be smart, don't invest in FTN. Its certainly the best advice I can give you.

Unknown said...

I think FTN is still a good investment. Currently you are getting over a 14% yield. The way they do this is by selling covered calls on the underlying portfolio. That provides the income to pay the juicy yield. For someone that has no interest in trading options this is a great way to out source a good income strategy. I like the underlying portfolio, and I don’t have a big enough investment to implement my own covered call strategy, so by buying FTN you are paying FTN to implement this strategy. You are correct in general about big yields, if you get a big yield from an oil stock, it’s probably about to be cut. But this is basically an income focused mutual fund.

Anonymous said...

Agree with Unknown. I have owned FTN.TO for many years and if you include dividend income my avg purchase price is less than 3.00 now. It has been an awesome way to boost up my TFSA. Put a stop limit on it and if something happens its sold and you protect your capital. Happy trading!


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