Prime Dividend Corp.: Further 6.58% Increase to Monthly Class A Share Dividend

TORONTO, ONTARIO--(Marketwired - Aug. 20, 2014) - Prime Dividend Corp. (the "Company") declares its monthly distribution of $0.06883 for each Class A share and $0.04167 for each Preferred share. Distributions are payable September 10, 2014 to shareholders on record as of August 29, 2014.

Under the new distribution policy announced on July 17, 2014, the monthly dividend payable on the Class A shares is determined by applying a 10% annualized rate on the volume weighted average market price (VWAP) of the Class A shares over the last 5 trading days of the preceding month. As a result, Class A shareholders of record on August 29, 2014 will receive a dividend of $0.06883 per share (up 6.58% from the previous month) based on the VWAP of $8.26 over the last 5 trading days in July, payable on September 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.

Preferred shareholders continue to received prime plus 0.75% with a minimum rate of 5% annually.

Since inception Class A shareholders have received a total of $7.43 per share and Preferred shareholders have received a total of $4.80 per share inclusive of this distribution, for a combined total of $12.23 per unit.

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