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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

Post by marcroberton Nov 08, 2023 11:51am
115 Views
Post# 35723807

Nav 46 cents, payout 20 cents amonth??

Nav 46 cents, payout 20 cents amonth??I have other splits but did not know about this one. how can they pay out 20 cents when nav is close to zero - this only happened in 2009 and 2020 as far as i can tell, but huge swings in nav in 2020 up and down. trying to warp my head around how nav of A shares is calculated

the current situation may be prolonged and not a short term crisis, so can they continue to pay, will they have to do a revese split? would they have to then issue sell shares to keep the number of prefs in balance?

i dont see what the nav is based on how it correlates to the portfolio.
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