Premium Income (TSE:PIC.A) Reaches New 12-Month High - Should You Buy?

Key Points

• 52-week high: Premium Income (TSE:PIC.A) hit a new 12-month high, last trading at C$9.60 (intraday high C$9.54) with about 56,978 shares changing hands, and is trading above its 50‑day (C$9.00) and 200‑day (C$8.73) moving averages.
• Mixed fundamentals: The stock shows a very low PE of 1.99 and a small market cap (~C$167M) but carries extremely high leverage (debt‑to‑equity 562.70), indicating elevated financial risk despite cheap valuation metrics.
• Portfolio focus and payout objective: The fund invests at least 75% of NAV in major Canadian banks and seeks to pay quarterly cash distributions from net realized capital gains, dividends and option premiums.

Premium Income Corporation (TSE:PIC.A - ) shares hit a new 52-week high on Monday . The stock traded as high as C$9.54 and last traded at C$9.60, with a volume of 56978 shares traded. The stock had previously closed at C$9.40.

Premium Income Price Performance

The firm's 50-day moving average price is C$9.00 and its two-hundred day moving average price is C$8.73. The stock has a market cap of C$167.09 million, a PE ratio of 1.99 and a beta of 1.21. The company has a current ratio of 1.18, a quick ratio of 1.45 and a debt-to-equity ratio of 562.70.

About Premium Income

to provide Class A shareholders with quarterly cash distributions equal to the amount, if any, by which the net realized capital gains, dividends and option premiums (other than option premiums in respect of options outstanding at year-end) earned on the Funds portfolio in any year, net of expenses and loss carry forwards, exceed the amount of the distributions paid on Class A shares upon windup of the Fund To accomplish its objectives, the Fund invests at least 75 percent of its net asset value (``NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the ``Banks) and may also invest up to 25 percent of its NAV in common shares of National Bank of Canada.

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