Dividend 15 Split Corp. II (DF.PR.A:CA): A Steady Beacon in the AI Storm

Theodore QuinnWednesday, May 21, 2025 9:50 am ET
2min read

As artificial intelligence (AI) disrupts industries and markets oscillate between euphoria and panic, investors are scrambling for income instruments that offer both stability and resilience. Enter Dividend 15 Split Corp. II’s 5.25% Cumulative Preferred Shares (DF.PR.A:CA)—a fixed-income vehicle that has weathered recent volatility with remarkable consistency. Its recent CAD 0.0583 monthly dividend declaration, coupled with a diversified equity portfolio anchored in defensive sectors, positions this preferred share as a compelling defensive play for income-focused investors.

The Dividend: A Proven Track Record, Now at 11.74% Yield

A graph showing DF.PR.A’s dividend consistency from 2023 to 2025, with a sharp uptick in 2025, overlaid on a background of fluctuating stock indices.

Let’s start with the numbers. DF.PR.A’s dividend yield now sits at 11.74%, a stark contrast to the paltry returns of traditional bonds and the roller-coaster risks of tech stocks. The recent CAD 0.0583 monthly payout, declared in April 2025 and payable in May, marks a significant increase from 2024’s average of CAD 0.04792—a 22% boost. But is this sustainable?

The data says yes. As of April 2025, the payout ratio—the percentage of earnings used to fund dividends—was just 28.14%, with earnings per share (EPS) at CAD 3.91. That leaves ample room for dividends to grow or remain steady even if earnings dip slightly. .

Why the Dividend Holds Up: A Portfolio Built for Turbulence

DF.PR.A’s strength lies in its diversified equity portfolio, which invests in Canadian dividend-paying stalwarts like banks, utilities, and telecoms. These sectors are far less exposed to AI-driven disruption than, say, manufacturing or retail. .

Take banks: Canada’s “Big Six” are stable, regulated, and less likely to face existential threats from AI. Utilities, similarly, operate in quasi-monopolistic markets with predictable cash flows. Even if the broader market tanks due to AI-related fears, these sectors remain a reliable income base.

A Hedge Against AI Volatility: The Case for Immediate Action

The AI boom has created two risks for income investors:
1. Tech stocks’ unpredictability: Companies like NVIDIA and Microsoft dominate headlines but face valuation bubbles and regulatory overhang.
2. Interest rate uncertainty: Central banks may hike rates again to cool overheating sectors, punishing bond holders.

DF.PR.A sidesteps both. Its preferred shares offer a fixed 5.25% coupon, shielded from interest rate fluctuations. Meanwhile, its equity portfolio’s defensive tilt acts as a buffer against tech-driven market swings.

The Bottom Line: A Rare Blend of Safety and Yield

At a time when investors are desperate for income, DF.PR.A offers a rare combination: a double-digit yield, a low payout ratio, and a portfolio engineered to outlast AI-driven chaos. With its next ex-dividend date pending but likely imminent (given its monthly schedule), now is the moment to secure a stake.

A split-screen image: one half shows a rising dividend chart, the other half a portfolio of physical assets like a bank building and a utility grid, symbolizing stability.

Act now—before the market recognizes what this preferred share is worth.