CPD Reduces Distribution

Blackrock Investments Canada has announced that the regular monthly distribution with record date March 29 and pay date April 5 will be for only $0.062 / share, compared with previous levels of $0.069 / share.

I suggest that shareholders get used to this, because an annual distribution of $0.744 and NAV of 17.16 is a Current Yield of 4.33%, which I suggest is not sustainable even in the short term, given the fund’s large holdings in high-coupon FixedResets, many of which are callable at par in the next two years.

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