Premium Income Corporation has two components; a preferred share (PIC.PR.A) and a capital share (PIC.A). Both pay monthly dividends. The preferred offers a stable payout yielding about 8.1%. The capital shares represent capital appreciation above the preferred share’s redemption price. The corporation, which is run by Mulvihill Investment Management, holds an equal weighted position in the six major Canadian banks. It writes covered calls and cash-secured puts to reduce portfolio volatility and enhance the monthly payouts.