Premium Income Corporation Announces Class A Share Split and an Increase to Total Distributions

Premium Income Corporation (TSX: PIC.A; PIC.PR.A) announced plans for a Class A share split and an increase in monthly distributions, marking a significant development for its shareholders. Effective January 13, 2026, shareholders of record will receive ten additional Class A shares for every 100 held, pending approval from the Toronto Stock Exchange. This initiative reflects the Fund's robust performance and aims to enhance shareholder value.

In conjunction with the share split, Premium Income Corporation has raised its monthly distribution to Class A shareholders from $0.08 to $0.09 per share. This increase translates to an approximate 22% overall rise in total distributions. Since its inception, Class A shareholders have enjoyed cumulative cash distributions of $41.61 per share, underscoring the Fund's commitment to providing consistent returns.

The trading of Class A shares on an ex-split basis will commence on January 13, 2026, with no fractional shares issued—any resulting shares will be rounded down to the nearest whole number. Importantly, the share split is classified as a non-taxable event, providing a favorable outcome for shareholders.

Monthly distributions are set to be paid on January 30, 2026, to shareholders who are on record by January 15, 2026. Expected distribution amounts include $0.09 for Class A shares and $0.10625 for Preferred Shares. Notably, any portion of these distributions classified as ordinary taxable dividends will qualify as eligible dividends.

For further inquiries, investors can reach out to Investor Relations at 416.681.3966 or through their website. This announcement positions Premium Income Corporation as a proactive player in the market, reinforcing its commitment to shareholder returns amid strong fund performance.

The recent announcement from Premium Income Corporation regarding its Class A share split and an increase in monthly distributions is a noteworthy development for investors. The decision to execute a share split, offering ten additional shares for every hundred held, reflects the Fund's robust performance. A share split typically serves to enhance a stock’s liquidity, making shares more affordable for a broader range of investors, potentially attracting increased trading volume.

Furthermore, the increase in monthly distributions from $0.08 to $0.09 per Class A share represents a 12.5% uplift, translating to a total increase in distributions of approximately 22% following the share split. This change not only signals financial health and operational success but also enhances the income potential for current and prospective investors. Total cash distributions since inception amounting to $41.61 per share underline the Fund's steady commitment to returning value to its shareholders.

Investors should carefully consider the implications of the upcoming share split and distribution adjustment. The share split, occurring on January 13, 2026, should not be perceived as a decline in value but rather as a strategy to boost market accessibility. Notably, the distribution increase will impact total income from holdings, making the shares more appealing to yield-seeking investors.

However, while the Fund's track record is impressive, investors must also account for potential market volatility and future performance trends. It is crucial to remain informed about broader economic conditions and sector-specific developments that may affect the Fund's profitability and distribution capacity. Overall, Premium Income Corporation appears strategically poised for growth, and careful monitoring of this investment opportunity could yield positive results for shareholders in the upcoming months.