PowerShares Offers Monthly Income on Dividend FundsBy Andrew Rickard | August 08 2014 02:15PM
On August 5, Invesco Canada announced that it will increase the frequency of distributions paid by its suite of PowerShares dividend-income funds, moving from quarterly to monthly payments. The fund company says the change is being made in response to demographic trends. With Canada's baby boomers heading into retirement, the company notes that there is a growing focus on investments that generate a monthly income stream, and says the shift is being made in response to that need.
Beginning in August, the following PowerShares funds will distribute income on a monthly basis.
- PowerShares Canadian Dividend Index Class
- PowerShares Canadian Preferred Share Index Class
- PowerShares Diversified Yield Fund
- PowerShares Global Dividend Achievers Fund
The increased frequency is the only change to the distribution policy of these funds. PowerShares points out that there will be no change to the calculation methodology of distributions.