Prime Dividend Corp is a high quality portfolio consisting of 17 dividend yielding Canadian companies. The portfolio shares have demonstrated a record of above-average long-term share performance and dividend growth. Two types of shares are available, a Class A and a Preferred.  The dividends received will vary or "float" with changes in the Prime Rate in Canada.

Portfolio Holdings:

Shares held within the Portfolio are expected to range between 4-8% in weight but may vary from time to time.

Objectives

Preferred Shares:
(i) to provide holders of the Preferred Shares with fixed, cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate in Canada plus 0.75%, with a minimum annual rate of 5% and a maximum annual rate of 7%; and
(ii) on or about December 1, 2012 (termination date), to pay the holders of the Preferred Shares the original issue price of those shares.

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%, with a minimum targeted annual rate of 5% and a maximum targeted annual rate of 10%; and
(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.