Global Dividend Growth Split Corp. is an equity mutual fund launched and managed by Brompton Funds Limited. The fund invests in the public equity markets across the globe. It invests in the growth stocks of companies with large-capitalization. Global Dividend Growth Split Corp. was formed on April 24, 2018 and is domiciled in Canada

Canada

Global Dividend Growth Split Corp.

Financial Services

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. On average, the company pays dividends monthly, which may appeal to investors valuing a regular income stream. 

GDV.TO reported revenue of CAD  At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 6ppts and its growth accelerated by 7ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Another important profitability metric, return on assets (RoA), amounted to 19.1% in the last 12 months, a decrease from 23.0% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 19.2%, above the peers. 

Global Dividend Growth Split Corp. reported a return on equity (RoE) of 39.9% in the last 12 months, down from 52.5% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 4.2 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

GDV.TO has poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is usually very stable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, excessive margin volatility, inadequate interest coverage, and poor cash flow generation. We note robust profitability, solid return on capital, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, GDV.TO is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, GDV.TO is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

Considering past and projected metrics, the stock is 'cheaper' than its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD. 

Global Dividend Growth Split Corp.

CA$ 11.1

5

Global Dividend Growth Split Corp.

CA$ 11.1

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CA$ 11.1

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