Brompton Split Corp. Preferred Share ETF Maintains Steady Dividends Amid 2025 Distribution Schedule

Investors in the Brompton Split Corp. Preferred Share ETF (SPLT) can anticipate consistent monthly income streams in 2025, with the fund maintaining its CAD 0.055 dividend per unit across all distributions this year. This stability positions splt as a reliable income-generating vehicle, though investors must remain mindful of ex-dividend dates, tax considerations, and the fund’s management fee.

Dividend Distributions: Timing Matters

The SPLT ETF’s 2025 dividend schedule is structured for monthly payouts, with each distribution aligning to a clear timeline:

• January Distribution: Ex-dividend date January 29, 2025; payment on February 14.
• February Distribution: Ex-dividend date February 26, 2025; payment on March 14.
• March Distribution: Ex-dividend date March 28, 2025; payment on April 14.
• April Distribution: Ex-dividend date April 28, 2025; payment on May 14.
• May Distribution: Ex-dividend date May 28, 2025; payment on June 13.
• June Distribution: Ex-dividend date June 26, 2025; payment on July 15.

The ex-dividend date is critical for investors: purchasing SPLT shares on or after this date disqualifies buyers from receiving the upcoming dividend. Conversely, investors who own the ETF before the ex-date are eligible for the payout.

Key Considerations for Investors

1. Consistency vs. Yield

At CAD 0.055 per unit annually, the total annualized dividend amounts to CAD 0.66 per share, yielding approximately 2.65% based on SPLT’s current net asset value (NAV). While this yield is modest compared to some high-yield ETFs, the monthly payout schedule offers income predictability, a rarity in volatile markets.

Ask Aime: "Will SPLT's stable monthly dividends continue in 2025?"

2. Management Fee Impact

The fund’s 0.50% management fee directly reduces net returns. For example, if SPLT’s NAV grows by 5% annually before fees, the net return would be 4.5%. Investors should weigh this cost against the tax efficiency of the dividends, which are structured as eligible dividends—a favorable tax status in Canada that typically allows for lower withholding rates. However, the final tax classification (e.g., eligible or non-eligible) will be confirmed in early 2026.

3. Ex-Dividend Date Risks

The ex-dividend date triggers a price drop equivalent to the dividend amount. For instance, if SPLT’s NAV is CAD 25.00 before the ex-date, it may adjust downward to CAD 24.945 post-ex-date. This adjustment can create short-term volatility but does not affect long-term value for buy-and-hold investors.

Risk Factors and Opportunities

• Interest Rate Sensitivity: Preferred shares, like those held by SPLT, are inversely correlated with interest rates. Rising rates could compress the ETF’s NAV, while falling rates may boost it.
• Credit Risk: The ETF holds preferred shares of various issuers, exposing investors to the creditworthiness of those companies. Diversification mitigates this risk but does not eliminate it.
• Tax Uncertainty: The pending tax classification could impact after-tax returns. Investors should consult their financial advisors to plan accordingly.

Conclusion

The Brompton Split Corp. Preferred Share ETF’s consistent CAD 0.055 monthly dividend in 2025 offers a stable income source for conservative investors, particularly those seeking predictable cash flows. With a clear ex-dividend schedule and a tax-advantaged structure (pending final classification), SPLT competes favorably in the preferred share ETF space. However, the 0.50% management fee and sensitivity to interest rate fluctuations mean investors should pair this holding with broader diversification.

For income-focused portfolios, SPLT’s 2.65% yield and monthly distributions make it a compelling option—provided investors prioritize stability over aggressive growth and remain disciplined in timing their purchases around ex-dividend dates.