Toronto, Ontario--(Newsfile Corp. - April 27, 2026) - Global Dividend Growth Split Corp. (TSX: GDV) (TSX: GDV.PR.A) (the "Fund") is pleased to announce its intention to complete a stock split of its class A shares (the "Share Split") due to the Fund's strong performance. Class A shareholders of record at the close of business on May 11, 2026 will receive 15 additional class A shares for every 100 class A shares held, pursuant to the Share Split. The Share Split is subject to the approval of the Toronto Stock Exchange (the "TSX").
Class A shareholders will continue to receive the same regular monthly non-cumulative cash distributions (currently $0.10 per class A share) following the Share Split. As a result, the total dollar amount of distributions to be paid to class A shareholders is expected to increase by approximately 15%. The Fund provides a distribution reinvestment plan ("DRIP"), on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth. Class A shareholders can enroll in the DRIP program by contacting their investment advisor.
Since inception on June 15, 2018 to March 31, 2026, the class A shares have delivered a 13.5% per annum total return based on net asset value, outperforming the MSCI World High Dividend Yield Total Return Index by 5.2% per annum and the MSCI World Total Return Index by 2% per annum.(1) Since inception, class A shareholders have received cash distributions of $9.35 per share.
Following the completion of the Share Split, the preferred shares of the Fund are expected to have downside protection from a decline in the value of the Fund's portfolio of approximately 54%.(2)
The class A shares are expected to commence trading on an ex-split basis at the opening of trading on May 11, 2026. No fractional class A shares will be issued and the number of class A shares each holder shall receive will be rounded down to the nearest whole number. The Share Split is a non-taxable event.
The Fund is also pleased to announce that the preferred share distribution rate for the extended term from July 1, 2026 to June 27, 2031 will be $0.62 per preferred share per annum (6.2% on the par value of $10.00) payable quarterly. This represents a pre-tax interest equivalent yield of 8.1% per annum.(3) The preferred share distribution rate for the extended term is based on current market rates for preferred shares with similar terms.
The term extension offers preferred shareholders the opportunity to continue enjoying preferential cash dividends until June 27, 2031. Since inception on June 15, 2018 to March 31, 2026, the preferred shares of the Fund have delivered a 5.1% per annum return(1).
The Fund invests in a diversified portfolio (the "Portfolio") of equity securities of large capitalization global dividend growth companies selected by Brompton Funds Limited (the "Manager"), the manager of the Fund. In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing of the Portfolio, each global dividend growth company included in the Portfolio must (i) have a market capitalization of at least $10 billion, and (ii) have a history of dividend growth or, in the Manager's view, have high potential for future dividend growth.
In connection with the extension, shareholders who do not wish to continue their investment in the Fund may retract their preferred shares or class A shares on June 30, 2026 pursuant to a special retraction right and receive a retraction price that is calculated in the same way that such price would be calculated if the Fund were to terminate on June 30, 2026. Pursuant to this option, the retraction price may be less than the market price if the security is trading at a premium to net asset value. To exercise this retraction right, shareholders must provide notice to their investment dealer by May 29, 2026 at 5:00 p.m. (Toronto time). Alternatively, shareholders may sell their preferred shares and/or class A shares through their securities dealer for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.
About Brompton Funds
For over 25 years, Brompton has been providing unique, well-conceived investments for Canadians, with a focus on low management fees, performance driven diversification strategies and attractive income and growth solutions for various market cycles. For further information, please contact your investment advisor, call Brompton's investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.
| (1) Compound Annual NAV returns to March 31, 2026 | 1-Year | 3-Year | 5-Year | Since Inception (June 15, 2018) |
| Class A Shares (TSX: GDV) | 17.8% | 28.9% | 15.0% | 13.5% |
| MSCI World High Dividend Yield Total Return Index | 15.9% | 12.7% | 8.6% | 8.3% |
| MSCI World Total Return Index | 19.4% | 17.3% | 10.8% | 11.5% |
| Preferred Shares (TSX: GDV.PR.A) | 5.1% | 5.1% | 5.1% | 5.1% |
Returns are for the periods ended March 31, 2026, and are unaudited. Inception date June 15, 2018. The table shows the compound return on a class A share and preferred share for each period indicated compared with the MSCI World Total Return Index ("MSCI Index") and the MSCI World High Dividend Yield Total Return Index ("High Dividend Index") (together the "Indices"). The MSCI Index captures large and mid-cap representation across 23 developed markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The High Dividend Index targets companies from the MSCI Index (excluding Real Estate Investment Trusts) with high dividend income and quality characteristics and includes companies that have higher than average dividend yields that are expected to be both sustainable and persistent. The Fund is actively managed; therefore, its performance is not expected to mirror that of the Indices, which have more diversified portfolios and include a substantially larger number of companies. The Indices' performance is calculated without the deduction of management fees, fund expenses and trading commissions whereas the performance of the Fund is calculated after deducting such fees and expenses. Additionally, the performance of the class A shares is impacted by the leverage provided by the preferred Shares. The performance information shown is based on net asset value per class A share, or the redemption price per preferred share and assumes that cash distributions made by the Fund during the periods shown were reinvested at net asset value per class A share, or the redemption price per preferred share in additional class A shares and preferred shares of the Fund. Past performance does not necessarily indicate how the Fund will perform in the future.
Certain information contained herein (the "Information") is sourced from/copyright of MSCI Inc., MSCI ESG Research LLC, or their affiliates ("MSCI"), or information providers (together the "MSCI Parties") and may have been used to calculate scores, signals, or other indicators. The Information is for internal use only and may not be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor does it constitute, an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index, nor should it be taken as an indication or guarantee of any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund's assets under management or other measures. MSCI has established an information barrier between index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided "as is" and the user assumes the entire risk of any use it may make or permit to be made of the Information. No MSCI Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each expressly disclaims all express or implied warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
(2) Based on the net asset value of the class A shares used to determine the Share Split ratio.
(3) Based on combined Federal and Provincial (Ontario) highest marginal tax rates/tax credits (Source KPMG, 'Personal Tax Rates', 2026). 2026 tax characteristics applied to the annualized distribution yield assuming the preferred shares are purchased at $10.00 and all distributions from the preferred shares are eligible dividends.
(4) No distributions will be paid on the class A shares if (i) the distributions payable on the preferred shares are in arrears, or (ii) in respect of a cash distribution, after the payment of a cash distribution by the Fund the net asset value per unit would be less than $15.00.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the TSX or other alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Fund in the public filings available at www.sedarplus.ca. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
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Source: Brompton Funds Limited