Unlock 16.40% Dividends with FTN.TO: A Fortress of Financial Giants in Volatile Markets

Investors seeking high yields in an uncertain market environment are turning to Financial 15 Split Corp. (FTN.TO), a closed-end fund delivering a 16.40% forward dividend yield while anchoring its portfolio in top-tier Canadian and U.S. financial institutions. With monthly dividends as stable as the tides since April 2025, FTN.TO offers a compelling mix of income and safety—a rarity in today’s choppy markets.

The Dividend Machine: 16.40% Yield, Backed by Ironclad Stability

FTN.TO’s 16.40% forward dividend yield—calculated using its annualized payout of C$1.51 per share—ranks among the highest in the Canadian market. What makes this yield sustainable? The fund’s 25.64% payout ratio, which is comfortably covered by trailing earnings of C$5.85 per share. This ratio has held steady even through past turbulence, such as the 2020 dip when dividends briefly dropped to C$0.046 before rebounding.

The fund’s monthly distribution history since April 2025 has been unbroken: shareholders received C$0.1257 per share every month, with the next payout due on June 10, 2025 (ex-dividend May 31). This consistency is underpinned by a three-year dividend growth rate of 21.49%, signaling management’s confidence in the portfolio’s earning power.

Portfolio Fortified by Financial Titans

FTN.TO’s secret sauce? A portfolio concentrated in 15 top-tier financial institutions, evenly split between Canada and the U.S.

Canadian Anchors:
- Bank of Montreal, Bank of Nova Scotia, Royal Bank of Canada (RBC), Toronto-Dominion (TD)
- Insurance giants like Manulife, Sun Life, and Great-West Lifeco

U.S. Heavyweights:
- JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, and Wells Fargo

These institutions are not just names—they’re pillars of stability. Canadian banks, in particular, benefit from robust household balance sheets and steady demand for mortgages and commercial lending. U.S. banks, while facing Fed rate cuts, remain cash-rich and well-capitalized. This diversification across borders and sectors insulates FTN.TO from regional economic shocks.

Outperformance in a Bear Market? The Numbers Say Yes

Despite recent market jitters, FTN.TO has outperformed the S&P/TSX Composite Index by 15.6 percentage points over the past year and nearly doubled its five-year returns (91% vs. 75%). Even year-to-date, it trails the index by a mere 0.67%, a testament to its defensive tilt.

Risks? Yes—but Manageable

No investment is risk-free. FTN.TO’s dividends could face pressure if interest rates rise sharply or if financial institutions tighten lending. Additionally, the fund’s technical "Sell" signal—flagged by analysts citing negative cash flows—warrants caution. However, management’s proven track record (Quadravest Capital’s 20-year history) and the portfolio’s low payout ratio suggest resilience.

Act Now: Secure 16.40% While the Window Opens

With FTN.TO’s shares trading at a discount to net asset value (NAV) and dividends locked in through 2026, this is a rare chance to lock in double-digit income with minimal principal risk. The fund’s focus on dividend-paying financial giants offers both income and capital appreciation potential as economic uncertainties ease.

The Bottom Line: FTN.TO isn’t just a dividend play—it’s a fortress built for income seekers. With a 16.40% yield, a rock-solid portfolio, and a track record of weathering storms, this fund deserves a place in every investor’s portfolio. The ex-dividend date on May 31, 2025, is your cue to act. Don’t let this yield slip away.

Invest now, and let FTN.TO’s financial giants work for you.