Dividends, Special Dividend Declared
Toronto, October 17, 1997: Premium Income Corporation (the "Company") has declared quarterly dividends of $0.226194 on each of its Preferred shares and $0.20 on each of its Class A shares payable on October 31, 1997 to shareholders of record on that date. In addition, the Company has declared a special dividend on each of its Class A shares of $1.701447 payable on the same date. The purpose of the special dividend is to ensure that the Company distributes a sufficient amount of its net income and net realized capital gains for 1997 so that it will not be liable for income tax on such amounts. The amount of the special dividend may therefore be subject to minor adjustment.
Premium Income Corporation is a mutual fund corporation which invests in the common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and The Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the Portfolio, the Company from time to time writes covered call options in respect to all or part of the common shares in the portfolio.
The Company's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The Company's Preferred and Class A shares are listed on The Toronto Stock Exchange and the Montreal Exchange under the symbols PIC.PR.A and PIC.A.