North American Financial 15 Split’s Dividend Declaration: A Steady Hand in Volatile Markets

North American Financial 15 Split Corp. (TSX: FFN) has reaffirmed its commitment to income-focused investors with its latest dividend declaration of CAD 0.1134 per Class A share, payable on May 9 to shareholders of record as of April 30. This marks the latest in a long line of consistent monthly distributions, underscoring the fund’s role as a reliable income generator in an era of economic uncertainty.

The Dividend in Context
The declared dividend, which annualizes to CAD 1.36 per Class A share, aligns with the fund’s historical pattern of distributing 9.6% of its net asset value (NAV) annually. Since its inception in October 2004, Class A shareholders have received a cumulative total of CAD 17.74 per share, while Preferred shareholders (FFN.PR.A) have been paid CAD 11.98 per share, combining for a total of CAD 29.72 per share across both classes. This consistency is particularly notable amid recent market volatility, as the fund’s portfolio of 15 top-tier financial services firms—spanning Canadian institutions like Royal Bank of Canada and U.S. giants such as JPMorgan Chase—has maintained its value.

A Structured Approach to Risk and Reward
North American Financial 15 Split operates as a split-share corporation, dividing its capital into two tranches: Class A shares and Preferred shares. The Preferred shares (FFN.PR.A) receive a smaller monthly distribution (CAD 0.07292, annualizing to CAD 0.875) but have priority in the event of liquidation. Class A shareholders, meanwhile, benefit from higher distributions and residual asset claims after Preferred shareholders are satisfied. This structure appeals to investors seeking both steady income (via Preferred shares) and long-term growth potential (via Class A shares).

The fund’s portfolio, which remains static at 15 holdings, emphasizes stability. As of March 2025, its net asset value stood at CAD 15.56 pre-distribution, with investments evenly split between Canadian and U.S. financial services firms. This geographic diversification has insulated the fund from regional economic shocks, while the focus on high-quality issuers—such as Bank of Montreal and Citigroup—ensures a resilient income stream.

Market Dynamics and Management Strategy
The fund’s management, Quadravest Capital Management Inc., has bolstered its flexibility with an at-the-market equity program (active until October 2026) and a Normal Course Issuer Bid, allowing it to buy back its own shares when undervalued. These tools reflect a proactive approach to capital management, which could prove advantageous if market conditions deteriorate.

The Preferred shares’ dividend rate, adjusted upward to 7.0% in late 2024, also signals confidence in the fund’s ability to sustain payouts. While the exact ex-dividend date for the April 2025 declaration was not specified, historical patterns suggest it would align with the record date of April 30, meaning investors must own shares by that date to qualify for the distribution.

Conclusion: A Conservative Bet in an Uncertain World
North American Financial 15 Split’s dividend declaration reinforces its value proposition as a conservative, income-focused investment. With a 21-year track record, a portfolio anchored in blue-chip financial institutions, and a split-share structure catering to diverse investor needs, the fund offers stability in turbulent markets.

Crucially, its total distributions since inception—nearly CAD 30 per share—demonstrate resilience even during periods of economic stress. While the fund’s annualized returns (4.2% for Class A shares as of 2023) may not dazzle in a high-growth environment, they provide a reliable floor for income seekers. As the fund approaches its 2029 termination date, investors can take comfort in its disciplined strategy and the enduring strength of its underlying holdings. For those prioritizing steady cash flows over high-risk gains, North American Financial 15 Split remains a compelling option.