PrefBlog

Brompton Funds has announced:

Dividend Growth Split Corp. (the “Fund”) is pleased to announce that the board of directors of the Fund has approved an extension of the maturity date of the class A shares (the “Class A Shares”) and preferred shares (the “Preferred Shares”) of the Fund. The current maturity date of September 27, 2024 will be extended for an additional term of approximately 5 years to August 30, 2029. The Preferred Share dividend rate for the extended term will be announced at least 60 days prior to the current September 27, 2024 maturity date and will be based on market yields for preferred shares with similar terms at that time. The term extension allows Class A shareholders to continue their investment with an attractive distribution rate of 20.5% based on the March 8, 2024 closing price, and the opportunity for capital appreciation.(1) The extension of the term of the Fund is not a taxable event and enables shareholders to defer potential capital gains tax liability that would have otherwise been realized on redemption of Class A Shares or Preferred Shares at the end of the term, until such time that shares are disposed of by shareholders.

Over the last 10 years to February 29, 2024, the Class A Share has delivered a 10.8% per annum return, which outperformed the S&P/TSX Composite Index by 3.4% per annum.(2) Since inception to February 29, 2024, Class A shareholders have received cash distributions of $15.99 per share. Class A shareholders also have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants.

The term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until August 30, 2029. Over the last 10 years to February 29, 2024, the Preferred Share has delivered a 5.5% per annum return, outperforming the S&P/TSX Preferred Share Index by 3.6% per annum with less volatility.(2)

The Fund invests, on an approximately equally-weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, the Fund may hold up to 20% of the total assets of the portfolio in global dividend growth companies for diversification and enhanced return potential.

This entry was posted on Tuesday, March 12th, 2024 at 7:51 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.