Brompton Group has announced (on 2025-8-12):
(TSX: GDV, GDV.PR.A) Global 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 June 30, 2026 will be extended for an additional term of approximately 5 years to June 27, 2031. The Preferred Share dividend rate for the extended term will be announced at least 60 days prior to the current June 30, 2026 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 10.7% based on the August 11, 2025 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 past five years to July 31, 2025, the Class A Share has delivered a 19.6% per annum return, outperforming the MSCI World High Dividend Yield Total Return Index and the MSCI World Total Return Index by 9.9% per annum and 5.3% per annum, respectively.(2) Since inception to July 31, 2025, Class A shareholders have received cash distributions of $8.55 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 June 27, 2031. The Preferred share has delivered a 5.1% per annum return over the past five years to July 31, 2025 and has a high level of downside protection, with 54% asset coverage as of July 31, 2025. The Company invests in a diversified portfolio (the “Portfolio”) of equity securities of large capitalization global dividend growth companies selected by Brompton Funds Limited (the “Manager”), the manager of the Company. In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least $10 billion, and (ii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth.
The sole affected (preferred share) issue is GDV.PR.A .