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 Financial Corp.

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, 2023 (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, 2023 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:

 

  • Cumulative monthly floating rate dividends*

  • Quality investment in Canadian companies

  • Strong downside protection and asset coverage

  • Pfd-3 (high) DBRS Rating  - June 22/21

  • Attractive Yield

  • Non-Callable

 

Class A Shares:

 

  • Monthly floating rate cash distributions*

  • Quality investment in Canadian companies

  • Capital appreciation potential

  • Attractive alternative to other income vehicles

  • 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 November 30, 2021:

National Bank of Canada
Toronto-Dominion Bank
BCE Inc
TMX Group Ltd
Sun Life Financial Inc
Canadian Imperial Bank of Commerce
TC Energy Corp
Bank of Nova Scotia
Royal Bank of Canada
Power Corporation of Canada
CI Financial Corp
Manulife Financial Corp
Bank of Montreal
TransAlta Corp
IGM Financial Inc
Great-West Lifeco Inc
AGF Management Ltd

November 30, 2021    
   

NAV Pre-Distribution:    $18.07
   
Distribution:    $0.1098
   
NAV Net of Distribution:    $17.96
   
NAV + Total Distributions Paid to Date:    $38.68