An anonymous director reports

DIVIDEND GROWTH SPLIT CORP. ANNOUNCES EXTENSION OF TERM

Dividend Growth Split Corp. has approved an extension of the maturity date of the Class A shares and preferred shares of the fund. The current maturity date of Sept. 27, 2024, will be extended for an additional term of approximately five years to Aug. 30, 2029. The preferred share dividend rate for the extended term will be announced at least 60 days prior to the current Sept. 27, 2024, maturity date and will be based on market yields for preferred shares with similar terms at that time. The term extension allows Class A shareholders to continue their investment with an attractive distribution rate of 20.5 per cent based on the March 8, 2024, closing price and the opportunity for capital appreciation. The extension of the term of the fund is not a taxable event and enables shareholders to defer potential capital gains tax liability that would have otherwise been realized on redemption of Class A shares or preferred shares at the end of the term, until such time that shares are disposed of by shareholders.

Over the last 10 years to Feb. 29, 2024, the Class A share has delivered a 10.8-per-cent-per-annum return, which outperformed the S&P/TSX Composite Index by 3.4 per cent per annum. Since inception to Feb. 29, 2024, Class A shareholders have received cash distributions of $15.99 per share. Class A shareholders also have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants. The term extension offers preferred shareholders the opportunity to enjoy preferential cash dividends until Aug. 30, 2029. Over the last 10 years to Feb. 29, 2024, the preferred share has delivered a 5.5-per-cent-per-annum return, outperforming the S&P/TSX Preferred share Index by 3.6 per cent per annum with less volatility.

The fund invests, on an approximately equally weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, the fund may hold up to 20 per cent of the total assets of the portfolio in global dividend growth companies for diversification and enhanced return potential.

We seek Safe Harbor.