Hi there,
Dividend 15 (TSX:DFN) is a split corp and is one we would never recommend. Split corp's are a little more complicated and use leverage to boost returns. Many investors get sucked in due to their high yield. However, they rely on new investments to the funds and the majority of the distributions are capital gains. Typically as the price collapses (which tends to happen as interest rates drop), it becomes more difficult to attract new investors, then a distribution cut is likely. Once it becomes too difficult to attract new investors, then the split corp eventually dissolves, and restarts again in a new cycle with a new fund and new distributions.
There is a lot of financial engineering involved in split corps and it is not something we recommend, in fact we actively avoid as they don't make for great long-term investments. Also of note, at today's price of $5.83 per share, it is trading at a premium to NAV of $4.89 per share (once removing the $10 per share for the preferred shares).
Mat