Bullboard - Stock Discussion Forum 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... see more

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Premium Income Corp > Nav 46 cents, payout 20 cents amonth??

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Post by marcrobert on Nov 08, 2023 11:51am

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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