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Analysis••By Canadian Preferred Shares

Power & Infrastructure Split Corp Resets at 6.4% for Next 5 Years

# Power & Infrastructure Split Corp Resets at 6.4% for Next 5 Years

Power & Infrastructure Split Corp (TSX: PWI) announced on March 30, 2026 that its preferred shares (PWI.PR.A) will reset to a 6.4% annual distribution rate for the next five-year term.

The Details

| Item | Value |
|------|-------|
| Symbol | PWI.PR.A |
| New Rate | 6.4% annually |
| Annual Distribution | $0.64 per share |
| Quarterly Distribution | $0.16 per share |
| Par Value | $10.00 |
| Term | May 30, 2026 to May 29, 2031 |

Key Differences from Standard Preferreds

Par Value of $10, Not $25

Most Canadian preferred shares have a par value of $25. PWI.PR.A has a par value of just $10. This means:

  • Lower absolute investment per share

  • Smaller dollar dividend ($0.16/qtr vs typical $0.40+/qtr)

  • Same percentage yield calculation applies

    • 5-Year Fixed Term

    Unlike rate reset preferreds that reset based on government bond yields, split corp preferreds typically reset at fixed rates set by the fund manager. This provides:

  • Predictable income for 5 years

  • No exposure to interest rate fluctuations

  • Rate set by manager based on portfolio performance

    • About Power & Infrastructure Split Corp

    The fund invests in a portfolio of infrastructure and utility companies, including:

  • Power utilities

  • Pipeline operators

  • Telecommunications

  • Other essential services

    • Managed by: Brompton Funds

    Current Yield at Market Price

    As of March 2026, PWI.PR.A trades around $10.18.

    At the new 6.4% distribution rate:

    ```
    Current Yield = $0.64 / $10.18 = 6.29%
    ```

    This is slightly below the 6.4% par yield due to the shares trading at a small premium.

    Risk Factors

    Split corp preferreds carry different risks than standard preferreds:

    1. NAV Coverage - The fund must maintain sufficient net asset value to cover preferred share obligations
    2. Maturity Risk - Shares mature in 2031; investors should understand redemption terms
    3. Manager Discretion - Rates are set by the manager, not a formula

    As of the latest report, Power & Infrastructure Split Corp has 53.2% downside protection, meaning the portfolio could decline by half before preferred shareholders are at risk.

    Bottom Line

    PWI.PR.A offers a fixed 6.4% yield for the next 5 years. For income investors comfortable with split corp structure risk, this provides:

  • Above-average yield

  • Predictable quarterly income

  • Infrastructure sector exposure

    • Use our Split Corps page to compare this with other split corp preferreds.

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    Distribution effective May 30, 2026. Always review the prospectus before investing.