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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 JohnWalkeron Aug 21, 2019 11:15am
177 Views
Post# 30050520

RE:RE:RE:Here We Go Again!!

RE:RE:RE:Here We Go Again!!
Intellectual wrote: The prospectus seems to imply that distributions get paid to capital shareholders regardless of NAV. Is this correct? If the NAV of pic.a declines to zero, do shareholders still get paid the quarterly dividend until termination in 2024? Any insights would be appreciated.

Many thanks in advance.


Yes, you are reading that correctly. There was a quarter or two back during the banking crisis (2007-2009) where dividends were cut by 1/3 (just one or two quarters though) from what was at the time a regular quarterly dividend of $0.15.

You can check NAV history back to inception here ...
https://www.strathbridge.com/navs.aspx?fund_id=7

and Distribution history back to inception here ...
https://www.strathbridge.com/distributions.aspx?fund_id=7

There was a consolidation of shares in late 2010, but the yield on distributions was maintained. That's when quarterly distributions went from $0.15 to $0.20319.


Bullboard Posts