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

Premium Income Corp

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Comment by YellowBrickRoadon Jan 14, 2019 6:19pm

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Post# 29230487

RE:big drop

RusticHit wrote: whats up with this big drop to 6.30 from 6.80 i bought at 6.50 in morning thought willmove backup with FTN FFN moving up ,but this is not that kind of beast

Yes, it is quite different.

PIC.A pays quarterly instead of FTN or FFN which are monthly (when paying)
Pays $0.20319 quarterly (works out to $0.06773 monthly) instead of the $0.1257 / $0.10 that FTN / FFN pay monthly (when paying)
2018 average yield is 11.1%, lower than FTN, FFN @11.1% vs. 15.93% FTN / 15.22% FFN
Although the distribution is lower, it has never missed since IPO in 1996
Until recently has been trading at a premium to NAV under 10% vs. the average premium of FTN around 40%, and for FFN around 17% up to 30%
Overnight Offering in October of 2018 which tends to depress price
Just announced an Overnight Offering today which is likely to depress the price again
Offering is at $14.60 Preferrred, $6.40 Class A
The October Offering was $15 Preferred, $6.60 Class A
NAV at Jan. 10 is $15 Preferred, $5.34 Class A
Is currently trading ex-dividend. The distribution will be on January 31. With no distribution for 3 months, it may take a while to rise again
Could be a good time for an offering as the market is still down from last year's highs, but market could turn again ??