TORONTO, ONTARIO -- (Marketwired) -- 01/20/14 -- On September 17, 2013 , Canadian Banc Corp. ("the Company") announced a change in the distribution policy to the Class A shares that resulted in an immediate increase of over 42% to the monthly dividend. The Company is pleased to announce a further 3% increase to the monthly distribution from its previous month's distribution, due to the increased market price of the Company's Class A share. The dividend for January will be $0.10150 per share. 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 3 trading days of the preceding month. As a result, Class A shareholders of record on January 31, 2014 will receive a dividend of $0.10150 per share based on the VWAP of $12.18 over the last 3 trading days in December, payable on February 10, 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. 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%. Since inception Class A shareholders have received a total of $7.32 per share and Preferred shareholders have received a total of $4.69 per share inclusive of this distribution, for a combined total of $12.01 per unit. The Company invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto- Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, The Company will engage in a selective covered call writing program. Distribution Details: Class A Share (BK) $0.10150 Preferred Share (BK.PR.A) $0.04167 Ex-Dividend Date: January 29, 2014 Record Date: January 31, 2014 Payable Date: February 10, 2014 Contacts: Canadian Banc Corp. Investor Relations 416-304-4443 Toll Free: 1-877-4-Quadra (1-877-478-2372), www.primerateplus.com Source: Canadian Banc Corp.
Most Popular Stories
- Photo ID Required for Unemployment Benefits
- Software Writers Sought in Indiana
- Ukraine Crisis Limits Losses in Gold, Silver
- Can GOP Dodge Immigration Bullet?
- How Past Mistakes Will Drive Ukraine's Future
- Tech Firms to Increase Hiring for 4th Year in a Row
- Job Fair for S.C. Grads
- Chiquita, Fyffes to Form Top Banana
- Millennials Favor Saving Over Investing: UBS
- Big Earthquake Rumbles Northern California