# Partners Value Split pfds - Yield



## agent99 (Sep 11, 2013)

Using PVS.PR.G as an example, the prospectus says:



> Holders of the Series 9 Preferred Shares will be entitled to receive quarterly fixed cumulative preferential dividends of $0.30625 per Series 9 Preferred Share. On an annualized basis, this would represent a yield on the offering price of the Series 9 Preferred Shares of 4.90%. Quarterly dividends on the Series 9 Preferred Shares will be paid by the Company on or about the 7th day of March, June, September and December in each year. Based on the anticipated closing date of November 26, 2018, the initial dividend (which covers the period from closing to February 28, 2019) is expected to be $0.3188 per Series 9 Preferred Share, and is expected to be paid on or about March 7, 2019 to holders of record on February 21, 2019.


BMOIL Quote for same pfd today:



> Last: 25.24
> Indicated Annual Dividend:	1.28 (~4x0.3188)
> Dividend Yield:	5.07


Partner Value Split website says:



> Class AA, Series 9	PVS.PR.G
> Issue price $25.00
> Annual Dividend $0.3063
> Dividend Yield 4.90%


I must be missing something. Why the discrepancy in dividend in prospectus and later ($0.3063/$0.3188). If yield is 4.9% at $25 issue price, shouldn't it be lower at $25.24?

Perhaps the initial dividend was for more than 3 months, and BMOIL are wrongly projecting that as the future dividend? If so, quite misleading.


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## fireseeker (Jul 24, 2017)

agent99 said:


> Perhaps the initial dividend was for more than 3 months, and BMOIL are wrongly projecting that as the future dividend? If so, quite misleading.


I think you've hit the nail on the head: BMOIL's computers simply predict that the last dividend will continue into the future. No human at BMOIL has actually read the prospectus, obviously. 
The prospectus does distinguish that the larger amount is for the "initial" dividend. It does look like the initial period is a few days longer than the standard three months.


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