Brompton Group has announced:
Dividend Growth Split Corp. (the “Fund”) announces a pro-rata redemption of preferred shares (the “Preferred Shares”) to maintain an equal number of class A shares (the “Class A Shares”) and Preferred Shares outstanding. In connection with the extension of the Fund’s term for an additional five years, holders of both Class A Shares and Preferred Shares had a special retraction right. Class A shareholders retracted 1,189,759 more shares than Preferred shareholders. As a result, the Fund is required to redeem 1,189,759 Preferred Shares on a pro-rata basis pursuant to the Fund’s constating documents. This is the first pro-rata redemption the Fund has had to effect since inception in December 2007. Each Preferred shareholder of record on November 28, 2019 will receive a redemption price of $10.13 per Preferred Share resulting in a reduction of 3.508% of each Preferred shareholders’ holdings. The redemption payment will be made on or before December 13, 2019.
Since inception in December 2007 to October 31, 2019, the Preferred Share has delivered a 5.4%(1) per annum return.
Since inception in December 2007 to October 31, 2019, the Class A share has delivered a 7.6%(1) per annum return, which outperformed the S&P/TSX Composite Index by 3.0% per annum. Since inception to October 31, 2019, Class A shareholders have received cash distributions of $13.09. Class A shareholders also have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants. Class A shareholders can enroll in the DRIP program by contacting their investment advisor.
The Fund invests, on an approximately equally-weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, DGS may hold up to 20% of the total assets of the portfolio in global dividend growth companies for diversification and enhanced return potential.
DGS.PR.A approved a term extension in 2011 which became official in 2013 and took effect in 2014 (these guys like to plan ahead!) with the dividend rate unchanged at 5.25%. The current extension was announced in September, 2018. The manager’s mandate expanded slightly in August, 2018. The dividend rate was reset to 5.50% until the next maturity 2024-9-27.
DGS.PR.A is tracked by HIMIPref™ but relegated to the Scraps – SplitShare index on credit concerns.
This entry was posted on Tuesday, November 19th, 2019 at 6:54 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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DGS.PR.A : Partial Call For Redemption
Brompton Group has announced:
DGS.PR.A approved a term extension in 2011 which became official in 2013 and took effect in 2014 (these guys like to plan ahead!) with the dividend rate unchanged at 5.25%. The current extension was announced in September, 2018. The manager’s mandate expanded slightly in August, 2018. The dividend rate was reset to 5.50% until the next maturity 2024-9-27.
DGS.PR.A is tracked by HIMIPref™ but relegated to the Scraps – SplitShare index on credit concerns.
This entry was posted on Tuesday, November 19th, 2019 at 6:54 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.