TORONTO, CANADA--(Marketwired - Feb. 11, 2014) - Canadian General Investments, Limited (CGI or the Company) (TSX:CGI)(TSX:CGI.PR.C)(TSX:CGI.PR.D)(LSE:CGI) has declared a quarterly dividend on its common shares.
Concurrently, the Board of Directors of the Company advanced a change in its approach to common share dividend payments. Henceforth, it is the Board's intention, when prudent, for CGI to provide its common shareholders with steady to rising quarterly dividends. The capital gains facility, whereby the Company is able to recoup capital gains taxes owing or payable when it distributes capital gains dividends to its common shareholders, would continue to be used, but the year-end special dividend would be de-emphasized and more of the annual distributions would be paid to common shareholders in the form of the four quarterly dividends. The Board believes this change should provide common shareholders with greater reliability as to their expected dividend income and potentially greater scope for share price appreciation.
Accordingly, the Board announced that it is increasing the regular quarterly cash dividend to $0.12 per share, reflecting a 4 cent or 50% increase over the previous quarter's dividend. The dividend is payable on March 15, 2014 to common shareholders of record at the close of business on February 28, 2014.
This dividend is designated as an "eligible dividend" for purposes of the Income Tax Act (Canada).
CGI is a closed-end equity fund, focused on medium to long-term investments in primarily Canadian corporations. Its objective is to provide better than average returns to investors through prudent security selection, timely recognition of capital gains/losses and appropriate income generating instruments.