An anonymous director reports

DIVIDEND GROWTH SPLIT CORP. ANNOUNCES PREFERRED SHARE DISTRIBUTION RATE

Dividend Growth Split Corp.'s preferred share distribution rate for the next term from Sept. 28, 2024, to Aug. 30, 2029, will be 67.5 cents per preferred share per year (6.75 per cent on the par value of $10) payable quarterly. This represents a pretax interest equivalent yield of 8.8 per cent per year. The preferred share distribution rate 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 Aug. 30, 2029. Over the past 10-year period to June 30, 2024, the preferred share has delivered a 5.5-per-cent-per-year return. The preferred share has delivered consistent returns over various interest rate cycles and has outperformed the S&P/TSX Preferred Share Index over the past 10-year period by 3.2 per cent per year, with less volatility.

                         ANNUAL COMPOUND RETURNS

                                   One-year   Three-year   Five-year   10-year

Preferred shares (TSX: DGS.PR.A)        5.6%         5.6%        5.6%      5.5% 
S&P/TSX Preferred Share Index          20.7%         1.1%        5.6%      2.3%  

In addition, the fund intends to maintain the targeted monthly Class A share distribution rate of at least 10 cents per Class A share. The Class A share has outperformed the S&P/TSX Composite Index and the S&P/TSX Composite High Dividend Index over the past one-, three-, five- and 10-year periods. Over the past 10-year period to June 30, 2024, the Class A share has delivered a 10.7-per-cent-per-year return, outperforming the High Dividend Index by 5 per cent per year and the Composite Index by 3.7 per cent per year.

                            ANNUAL COMPOUND RETURNS

                                     One-year   Three-year   Five-year   10-year

Class A shares (TSX: DGS)                27.2%        14.2%       16.1%     10.7% 
S&P/TSX Composite Index                  12.1%         6.0%        9.3%      7.0%  
S&P/TSX Composite High Dividend Index     6.6%         6.3%        8.7%      5.7%  

Since inception on Dec. 3, 2007, to June 30, 2024, Class A shareholders have received cash distributions of $16.39 per Class A share. Class A shareholders have the option to benefit by reinvesting their cash distributions in a distribution reinvestment plan, which is commission free to participants. Class A shareholders can enroll in the DRIP program by contacting their investment adviser.

The fund invests, on an approximately equally weighted basis, in a portfolio consisting primarily of equity securities of Canadian dividend growth companies. In addition, DGS 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.

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 Sept. 27, 2024, 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 Sept. 27, 2024. 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 Aug. 30, 2024, at 5 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.

We seek Safe Harbor.