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Intact Financial Corp's Non-cumulative Rate Reset Class A Shares Series 1 Goes Ex-Dividend Soon

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On 9/11/14, Intact Financial Corp's Non-cumulative Rate Reset Class A Shares Series 1 (TSX: IFC-PRA.TO ) will trade ex-dividend, for its quarterly dividend of $0.2625, payable on 9/30/14. As a percentage of IFC.PRA's recent share price of $24.30, this dividend works out to approximately 1.08%, so look for shares of IFC.PRA to trade 1.08% lower - all else being equal - when IFC.PRA shares open for trading on 9/11/14. On an annualized basis, the current yield is approximately 4.33%.

As of last close, IFC.PRA was trading at a 3.00% discount to its liquidation preference amount. It should be noted that the preferred shares are convertible . Investors should keep in mind that the shares are not cumulative , meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend. The chart below shows the one year performance of IFC.PRA shares, versus IFC:

Performance Comparison Chart

Below is a dividend history chart for IFC.PRA, showing historical dividends prior to the most recent $0.2625 on Intact Financial Corp's Non-cumulative Rate Reset Class A Shares Series 1:

IFC.PRA+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Intact Financial Corp (TSX: IFC.TO ) makes up 2.52% of the SPDR MSCI Canada Quality Mix ETF ( QCAN ) which is trading relatively unchanged on the day Tuesday.

In Tuesday trading, Intact Financial Corp's Non-cumulative Rate Reset Class A Shares Series 1 (TSX: IFC-PRA.TO ) is currently up about 0.2% on the day, while the common shares (TSX: IFC.TO ) are down about 0.7%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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