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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 Sep 14, 2019 3:34am
161 Views
Post# 30126419

RE:NAV to August Month End

RE:NAV to August Month EndPIC.A NAV had a very nice increase of $0.62 this past week. That's a 12.75% increase in NAV. If you give the overnight offering price of $6.10 a similar 12.75% increase that would translate into a share price of $6.88. Clearly you could see the move starting today (Friday the 13th) in the share price.

Don't worry "wobbles" you should at least recover to your original purchase price soon, and if you hold until Oct 15 you'll be eligible for a $0.20319 dividend per share yielding you (an approximately) 12% yield on your investment.

Most of the "experts" that you will see here playing the split corp funds would sneer at a 12% yield - we usually target 18-25% - but 12% is still quite nice compared to the standard 3-6% that other dividend yielding stocks pay.


We bulls "wobbles" but we don't fall down !


Bullboard Posts