Prime Dividend Corp.: Policy Change Results in Increase to Class A Share July Monthly Dividend

Prime Dividend Corp. (the "Company") is pleased to announce a change in the
distribution policy to the Class A shares that will result in an immediate
increase to the July monthly dividend. Under the new policy the annualized rate
will increase to 10% based on the current trading price. The Company believes
the new policy will better reflect actual returns of the Company's underlying
portfolio and will allow further dividend increases as the Company's trading
price increases.


Under the new distribution policy, the monthly dividend payable on the Class A
shares will be determined by applying a 10% annualized rate on the volume
weighted average market price (VWAP) of the Class A shares over the last 5
trading days of the preceding month. As a result, Class A shareholders of record
on July 31, 2014 will receive a dividend of $0.06458 per share based on the VWAP
of $7.75 over the last 5 trading days in June, payable on August 8, 2014.
Effectively, the actual amount of monthly distributions paid will vary with the
market price, but the current yield will remain stable at 10% (based on the
VWAP) under this new distribution policy.


In making this change, the Manager and the Board have considered the following
in their analysis:




1.  The net asset value per unit ($18.76 as at July 15, 2014) and the range
    over the previous years. 
2.  The amount of dividend income and additional income earned from the
    covered call writing program. 
3.  The resumption of dividend increases in many of the companies held in
    the portfolio, resulting in an increase in the average dividend rate. 
4.  The historically unprecedented low rate environment which has caused the
    distribution rate on the Class A shares to remain at the minimum level
    over the last 5 years under the previous floating rate distribution
    policy. 
5.  The net asset value attributable to the Class A shares which is
    approximately 10% higher than the trading price (as at July 15, 2014).



There will be no changes to the Preferred Share dividend policy or the Class A
dividend threshold policy. Preferred shares will continue to receive prime plus
0.75% with a minimum rate of 5% annually.




Distribution Details:                                                       
Class A Share (PDV)                                                 $0.06458
Preferred Share (PDV.PR.A)                                          $0.04167
Ex-Dividend Date:                                              July 29, 2014
Record Date:                                                   July 31, 2014
Payable Date:                                                 August 8, 2014



FOR FURTHER INFORMATION PLEASE CONTACT: 
Investor Relations
416-304-4443
Toll Free at 1-877-4-Quadra (1-877-478-2372)
www.primedividend.com