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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TSX:PIC.A - Post Discussion

Premium Income Corp > Good point Navgod,,,,

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Post by elonmuskrat247 on Sep 03, 2024 8:06am

Good point Navgod,,,,

The news release clearly states that the 8.5 % is set only for the fiscal year on the preferred shares. As rates continue to drop they can reset it accordingly in future years.

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Comment by navgod on Sep 03, 2024 8:29am

Agreed that is how I read it -- however if you review the most recent annual report or short form prospectus the period referred to is the full seven year term hence my inquiry to Mulvihill. If it is only the rate for one year many pref holders will redeem as next year they will not have the retraction club to force a high rate. Given the aggressive dividend policy of the capital shares(dividends ...more

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