TORONTO, ONTARIO--(Marketwired - July 17, 2014) - Prime Dividend Corp. (the "Company") is pleased to announce a change in the distribution policy to the Class A shares that will result in an immediate increase to the July monthly dividend. Under the new policy the annualized rate will increase to 10% based on the current trading price. The Company believes the new policy will better reflect actual returns of the Company's underlying portfolio and will allow further dividend increases as the Company's trading price increases.
Under the new distribution policy, the monthly dividend payable on the Class A shares will be determined by applying a 10% annualized rate on the volume weighted average market price (VWAP) of the Class A shares over the last 5 trading days of the preceding month. As a result, Class A shareholders of record on July 31, 2014 will receive a dividend of $0.06458 per share based on the VWAP of $7.75 over the last 5 trading days in June, payable on August 8, 2014. Effectively, the actual amount of monthly distributions paid will vary with the market price, but the current yield will remain stable at 10% (based on the VWAP) under this new distribution policy.
In making this change, the Manager and the Board have considered the following in their analysis:
There will be no changes to the Preferred Share dividend policy or the Class A dividend threshold policy. Preferred shares will continue to receive prime plus 0.75% with a minimum rate of 5% annually.
Distribution Details: | |
Class A Share (PDV) | $0.06458 |
Preferred Share (PDV.PR.A) | $0.04167 |
Ex-Dividend Date: | July 29, 2014 |
Record Date: | July 31, 2014 |
Payable Date: | August 8, 2014 |
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