Brompton Split Banc Corp. (TSX: SBC) has announced a stock split of its class A shares, with shareholders of record at the close of business on November 11, 2026 set to receive 10 additional class A shares for every 100 held. The split, subject to Toronto Stock Exchange approval, is expected to increase total dollar distributions to class A shareholders by approximately 10%, while the monthly targeted cash distribution remains $0.10 per share. The announcement highlights the Fund's strong decade-long performance relative to key Canadian bank benchmarks, giving income-focused investors reason to take note.

Key Points

  • Brompton Split Banc Corp. (TSX: SBC, TSX: SBC.PR.A) announced a class A share split and increased total distributions
  • Shareholders of record on November 11, 2026 will receive 10 additional class A shares per 100 held, distributed November 12, 2026
  • Monthly distribution target remains $0.10 per class A share; total distributions expected to rise approximately 10%
  • Investors may watch for TSX approval of the share split and ex-split trading commencing November 11, 2026

Share Split Mechanics and Distribution Impact for SBC Class A Shareholders

The share split will be executed on a 10-for-100 basis, meaning eligible class A shareholders receive 10 new shares for every 100 currently held. No fractional shares will be issued, and fractional entitlements will be rounded down to the nearest whole number. The company confirmed the split is a non-taxable event. Because the monthly targeted distribution of $0.10 per class A share is maintained after the split, the total dollar amount of distributions paid to class A shareholders collectively is expected to increase by approximately 10%. A commission-free distribution reinvestment plan remains available for shareholders wishing to compound returns.

Ten-Year Performance Record Driving the Split Decision

Brompton attributes the share split to the Fund's continuing strong performance. Over the 10 years ended September 30, 2026, class A shares delivered a compound annual return of 21.6% based on net asset value — outperforming the S&P/TSX Equal Weight Diversified Banks Total Return Index by 6.1% per annum and the S&P/TSX Composite Total Return Index by 9.2% per annum. Since inception in November 2005, class A shareholders have received cumulative cash distributions of $24.65 per share. Past performance does not necessarily indicate future results, and returns were calculated after deducting management fees and fund expenses.

Portfolio Composition and Preferred Share Downside Protection

The Fund invests on an approximately equally weighted basis in common shares of Canada's six largest banks: Royal Bank of Canada, Bank of Nova Scotia, National Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Bank of Montreal. Up to 10% of total portfolio assets may be held in global financial companies for diversification. Based on net asset value calculated on October 22, 2026, and adjusted for the share split, preferred shares of the Fund are expected to carry downside protection of approximately 56% from a decline in the portfolio's value.