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Abstract
The impact of the broad based selling has adversely impacted the portfolios of Dividend 15 Split Corp. ("Dividend 15") and Dividend 15 Split Corp. II ("Dividend 15 II"). The net asset values have declined by approximately 21% from August 31, 2008 to October 16, 2008. The Manager believes current valuations of many of the stocks in the portfolios are now trading at extremely attractive levels. In particular, dividend yields on the portfolios have reached historically high levels compared against fixed income securities and the level of inflation. The current yield in the underlying portfolios is 4.8% . The companies in the portfolios have excellent earnings growth histories and have long records of maintaining and growing their dividends over time. This should provide meaningful support to the stock prices of these companies even through this economic slowdown. As a result of the volatility index reaching all time record highs, the option premiums available in the market are also attractive and are allowing the Manager to add significant levels of additional income to the portfolios. The portfolio manager continues to view the underlying holdings of Dividend 15 and Dividend 15 II as among the lowest risk companies in Canada.