Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Premium Income Corp T.PIC.A

Alternate Symbol(s):  T.PIC.PR.A

Premium Income Corporation is a split share company. The Fund’s investment objectives are to provide Preferred shareholders with cumulative preferential quarterly cash distributions of $0.215625 per share, representing an annual yield of 5.75% on the original issue price of the Preferred shares; to provide Class A shareholders with quarterly cash distributions of $0.20319 per share, and to return the original issue price to holders of both preferred share and Class A shares upon windup of the Fund. It invests at least 75 % of its net asset value (NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the Banks) and also invests up to 25 % of its NAV in common shares of National Bank of Canada. In addition, the Fund may purchase public investment funds, including exchange-traded funds and other Mulvihill Funds. Its investment manager is Mulvihill Capital Management Inc.


TSX:PIC.A - Post by User

Bullboard Posts
Comment by alderon Sep 16, 2007 7:34pm
437 Views
Post# 13407317

RE: Question to board

RE: Question to boardPart of the reason is they rely very heavily on capital gains to pay their dividend. As shown from their latest semi-annual report : Total revenue 0.44 Total expenses (0.14) DISTRIBUTIONS Preferred Share From capital gains (0.04) From taxable income (0.39) This shows their net income is 30 cents and they are paying 43 cents to their PREFERRED shareholders. That is to say there is not even enough net income (excluding capital gains and options gains)to pay the preferred's let along the capital shares. However, when you throw in the capital gains and gains from their option trading they can meet both preferred and capital share payments. The fact that the extra income from the capital gains and option trading may not always be there, may be the reason for the stock not trading higher. Mind you, they having been meeting their 30 cents per quarter payment to the capital shares for well over ten years - an excellent record. Cheers Alder
Bullboard Posts