Tuesday, 9 March 2010

Carfinco Announces First Quarterly Special Distribution 0f 2010

Carfinco Income Fund (TSX: CFN.UN)
Units issued basic 23.9 million
Units issued fully diluted 24 million
Current monthly distribution: $0.02
Current annualized yield: ~ 10.6%

Carfinco continues to impress the market and unit holders, this time by announcing a special quarterly distribution of $0.04 per unit. This is on top of its regular monthly distribution of $0.02 per unit for a total March distribution of $0.06 per unit.

The market reacted positively to the news and Carfinco hit a new 52 week high of $3.01 per unit after its release, up ten fold from its $0.30 52 week low.

Under the Deed of Trust that governs the fund, the company must distribute all of its taxable income by year end and unit holders on record as of March 19th will be entitled to the distributions.

Based on today’s trading price of $2.97 as of this writing, the increased distribution adds up to a 10.6% annualized yield. This may seem more appealing to investors than a typical bank savings account, which sits at a depressingly low 0.75 %.

See full news release here...............................