Prime Dividend Corp.
TSX : PDV
TSX : PDV.PR.A

Prime Dividend Corp.

April 23, 2008 11:56 ET

Prime Dividend Corp.: Dividend Rate Change

TORONTO, ONTARIO--(Marketwire - April 23, 2008) - As a result of the Bank of Canada's decision yesterday to decrease the bank rate in Canada by 0.50%, the Prime Rate has also decreased by 0.50% to 4.75% . As a result, the May dividends payable to both Preferred Shares and Class A shares of Prime Dividend are each set to decrease by 0.50% . This would result in the May Preferred share dividend once declared being set at an annualized rate of 5.50% (Prime Rate plus 0.75%) and the Class A share dividend being set at an annualized rate of 6.75% (Prime Rate plus 2.0%).

Prime Dividend invests in a portfolio of high yielding Canadian Companies as follows:




Banks Investment Management Life Insurance Utilities &
Other
Bank of Montreal AGF Management Ltd. Great-West Lifeco BCE Inc.
The Bank of Nova CI Financial Inc. TransAlta
Scotia IGM Financial Inc. Manulife Corp
CIBC Financial Corp. TransCanada
National Bank of Sun Life Corp
Canada Financial Inc. Power
Royal Bank of Financial
Canada Corp.
Toronto-Dominion TSX Group
Bank Inc.


Shares held within the Portfolio will generally represent no less than 4% and no more than 8% of the net asset value.

The fund's investment objectives are:

Floating Rate Preferred Shares:

(i) to provide holders of the Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate in Canada plus 0.75% (minimum 5%, maximum 7%) based on original issue price of $10.00 per share

(ii) on or about December 1, 2012 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.

Floating Rate Class A Shares:

(i) to provide holders of the Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate in Canada plus 2.0% (minimum 5%, maximum 10%) based on original issue price of $15.00 per share

(ii) on or about December 1, 2012 (termination date), to pay the holders of Class A Shares at least the original issue price of those shares.

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