OVERVIEW
CORE HOLDINGS
Prime Dividend Corp. is an investment corporation designed to pay floating monthly cash dividends. The Company invests in a portfolio of high quality dividend yielding Canadian companies.
The Corporation offers two classes of floating rate securities, a Class A (PDV) and a Preferred (PDV.PR.A).
To view a Split Share Fund overview please click here.
AGF Management Ltd.
Bank of Montreal
Bank of Nova Scotia
BCE Inc.
Canadian Imperial Bank of Commerce
CI Financial Corp.
Great-West Lifeco Inc.
IGM Financial Inc.
Manulife Financial Corporation
National Bank of Canada
Power Corporation of Canada
Royal Bank of Canada
Sun Life Financial Inc.
TMX Group Inc.
Toronto-Dominion Bank
TransAlta Corporation
TC Energy Corporation
Shares held within the Portfolio are expected to range between 4-8% in weight but may vary from time to time. Top holdings by weight may include holdings other than the core holdings as up to 20% of the net asset value may be invested in equity securities of issuers in the financial services or utilities sectors in Canada or the United States, other than the core holdings (as per the Prospectus).
OBJECTIVES
SHARE HIGHLIGHTS
Preferred Shares:
(i) to provide holders of the Preferred Shares with cumulative preferential floating rate monthly cash dividends at an annual rate equal to Prime Rate plus 2.35% (min 5%, max 8%) based on $10 redemption value, and; (ii) to pay the holders of the Preferred Shares the $10 redemption value on or about the termination date of December 1, 2028 (subject to further 5 year extensions thereafter).
Class A Shares:
(i) to provide holders of the Class A Shares with regular monthly cash distributions currently targeted to be at a rate of 10% annualized based on the volume weighted average market price of the Class A shares for last 5 trading days of the preceding month, and;
(ii) on or about the December 1, 2028 termination date (subject to further 5 year extensions thereafter), to pay the holders of Class A Shares at least the original issue price of those shares.
​Preferred Shares:
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Cumulative monthly floating rate dividends*
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Quality investment in Canadian companies
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Strong downside protection and asset coverage
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Pfd-3 DBRS Rating - May 14/24
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Attractive Yield
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Non-Callable
Class A Shares:
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Monthly floating rate cash distributions*
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Quality investment in Canadian companies
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Capital appreciation potential
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Attractive alternative to other income vehicles
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Tax efficient distributions
*For the purposes of the Income Tax Act (Canada) and any similar provincial legislation, the Company designates any and all dividends paid on both its Class A and Preferred shares as “eligible dividends” unless the Company indicates otherwise.
TOP HOLDINGS
VALUATION
Holdings Sorted by weight as at May 31, 2024
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TMX Group Ltd
Manulife Financial Corp
National Bank of Canada
Canadian Imperial Bank of Commerce
Royal Bank of Canada
Power Corporation of Canada
Toronto-Dominion Bank
TC Energy Corp
Bank of Montreal
Bank of Nova Scotia
BCE Inc
Great-West Lifeco Inc
AGF Management Ltd
IGM Financial Inc
Sun Life Financial Inc
TransAlta Corp
CI Financial Corp
June 14, 2024
NAV Pre-Distribution: $16.60
Distribution: $0.00
NAV Net of Distribution: $16.60
NAV + Total Distributions Paid to Date: $40.57