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 > Dumped all my shares after reading this.

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Post by mnztr on Nov 04, 2024 3:34pm

Dumped all my shares after reading this.

May go back in after the dust settles, but I don't see how the price relative to NAV can go up after a 25% divvy cut. Maybe I am wrong.. who knows.

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Comment by marcrobert on Nov 05, 2024 1:48pm

why not go with something more stable like bkcl or bank sbc etc.?

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Comment by Donwaan on Nov 05, 2024 3:13pm

Pic.a has fallen in tandem all the other splits recently. The consolidation and reduced distribution notwitstanding it should recover as the entire split sector does. Although it may take a little longer.

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Comment by marcrobert on Nov 05, 2024 3:30pm

recover how? based on the underlying? it's trading at nav more or less now. But both the nav and distribution rate are changing dramatically, distribution not in a good way. If the yield comes back up to 20% after the 15th, that means (underlyng value remaining equal) the price will have fallen from 6 and change to 4.80

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Comment by Donwaan on Nov 06, 2024 10:32am

If PIC A trades around it's post consolidation NAV and it consistently pays an 8 cent monthly distribution the market will respond favourably,albeit gradually perhaps.

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