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 JohnWalkeron Mar 03, 2020 11:13am

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Post# 30760900

RE:RE:RE:RE:Mar. 02 NAV

JohnWalker wrote: 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%.

I forgot one ....

3) PIC.A dividend is ALL return on capital.

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