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; the redemption terms are disclosed in the prospectus and govern how the maturity works
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.

This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Preferred share prices, yields, and dividends fluctuate. Always consult a qualified financial advisor before making investment decisions.