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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 Mar 03, 2020 6:40am
78 Views
Post# 30759595

RE:RE:RE:Mar. 02 NAV

RE:RE:RE:Mar. 02 NAVI would say that's a definite yes (kind of like DFN deserves a premium because they have NEVER missed a dividend payment).

It all depends though on what your goal is - capital appreciation or dividend income. I buy the splits because I like the monthly dividend income. But PIC.A has some definite cons in my opinion.

1) They pay quarterly, not monthly, so income is more sporadic.

2) Yield. Suppose you bought at $5.50 per share. They pay $.20319 quarterly, so yield  would only work out to about 14.77. That's a good yield, but before the Coronavirus price effects PIC.A was yielding about 12% while you could be getting over 20% with others. For example I was holding FFN for quite a while and at my buy price I was getting about 19.75%. There was a time (a while back) when I held DGS and was getting about 24%.
Bullboard Posts