Topic: How To Invest

Dear Pat: Would you please give me your opinion on Brompton Equity Split Corp. and Dividend Growth Split Corp.? Thanks.

Article Excerpt

Brompton Equity Split Corp., $12.97, symbol BE on Toronto (Shares outstanding: 1.7 million; Market cap: $21.9 million; www.bromptongroup.com) mainly invests in large-cap Canadian stocks. The fund was scheduled to wind up on May 31, 2011. However, it now plans to merge with Dividend Growth Split Corp., $9.21, symbol DGS on Toronto (Shares outstanding: 4.3 million; Market cap: $40.0 million; www.bromptongroup.com), on May 18, 2011. The new Dividend Growth Split Corp., symbol DGS on Toronto, will have a termination date of November 30, 2019. A split-share company issues two classes of shares. The capital shares get all or most of the capital gains and losses; the preferred shares get most of the dividend income. Dividend Growth Split has two share classes: Dividend Growth Split Capital $9.21 (Toronto symbol DGS) and Dividend Growth Split Preferred $10.22 (Toronto symbol DGS.PR.A). Dividend Growth Split Capital shares are volatile. A small move in the price of the underlying shares translates into a much larger move…