# Top 20 Dividend Trust (TTY.UN)



## Hawkdog (Oct 26, 2012)

Thought I posted this one awhile back, but it won't come up in a search.
Low share float. pays 6%

Anyone see any issues with it that I might be missing? I accumulated 1500+ shares around 10 bucks and have been holding for the divi's.


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## off.by.10 (Mar 16, 2014)

Seems to paying out more than nearly every single stock in it (I haven't checked all, but most seem in the 3-6% range). Which I suppose means it's paying out capital as dividends. Not a very good idea from a tax perspective as far as I know.


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## liquidfinance (Jan 28, 2011)

Looking at the latest wood grundy report it seems to be trading at a slight discount to NAV. That would explain some of the difference in yield when compared to the underlying holdings. 

Not really looked into it though. 

Here is the Wood Grundy report

http://www.investorvillage.com/uploads/57919/files/ccefm.pdf


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## liquidfinance (Jan 28, 2011)

Just to add this is taken from the 2013 annual report

53.5% return of capital. 



> For the year ended December 31, 2013, the Trust declared total distributions of $5.48 million or $0.70 per
> Unit (2012 – $2.94 million or $0.3693 per Unit). Distributions consisted of 53.5% return of capital (2012 –
> 43.97%), 46.5% dividend income (2012 – 28.13%) and 0% capital gains (2012 – 27.90%). Dividends earned
> on the Portfolio Securities and premiums received on writing covered call options on a portion of the
> ...


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## underemployedactor (Oct 22, 2011)

I assume that if you held this in a TFSA you wouldn't have to worry about ROC tax implications, but what about its sister TTE.UN? Are the individual securities held in ADRs and you get clipped for withholding taxes? Sorry if this is beyond the scope of this thread but it is a question that perplexes me.


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