Central Securities Corporation Announces Reinvestment Price of Shares for Distribution Payable December 20, 2024

Rhea-AI Summary

Central Securities (NYSE American: CET) has announced the reinvestment price for its upcoming distribution. The company will issue Common Stock at $47.41 per share for the $2.05 per share distribution payable on December 20, 2024. This price was calculated using the arithmetic average of the daily volume weighted average price (VWAP) for the last three trading days through December 4, 2024.

The distribution, announced on November 5, 2024, will be paid to shareholders of record as of November 15, 2024. Of the total distribution, $0.53 is expected to be taxed as ordinary income and $1.52 as long-term capital gain. The tax treatment will remain consistent whether shareholders receive the distribution in stock or cash.

Positive

• Distribution of $2.05 per share to shareholders
• Majority of distribution ($1.52) qualifies for favorable long-term capital gains tax treatment

Negative

• None.

Insights

Financial Analyst

The announcement details a significant distribution of $2.05 per share by Central Securities , with shares being issued at $47.41 per share. The tax composition of this distribution is noteworthy, with $0.53 being treated as ordinary income and $1.52 as long-term capital gains. This structure provides a tax-efficient return to shareholders, particularly beneficial for long-term investors.

The distribution represents a yield of approximately 4.32% based on the issuance price, which is competitive in the current market environment. The option for shareholders to receive the distribution in stock rather than cash allows for automatic reinvestment, supporting compound growth potential while helping the company retain capital. This flexibility in distribution method demonstrates strong shareholder-focused capital management.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET) announced today that the price at which Common Stock will be issued in payment of the $2.05 per share distribution payable on December 20, 2024 is $47.41 per share. This price is the arithmetic average of the daily volume weighted average price (“VWAP”) of the Corporation’s Common Stock for each of the last three trading days ending on and including December 4, 2024, rounded to two decimal places. The distribution was previously announced on November 5, 2024 and is payable to shareholders of record on November 15, 2024.

Of the $2.05 per share to be paid, $0.53 is expected to be taxable as ordinary income and $1.52 is expected to be taxable as long-term capital gain. Tax treatment will be the same whether the distribution is received in stock or cash. The final tax breakdown of all amounts paid during 2024 will be available after year end.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241204602012/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

(212) 698-2020

Source: Central Securities Corporation

FAQ

What is the reinvestment price for Central Securities (CET) December 2024 distribution?

The reinvestment price is $47.41 per share for the $2.05 distribution payable on December 20, 2024.

When is Central Securities (CET) December 2024 distribution payable?

The distribution is payable on December 20, 2024, to shareholders of record as of November 15, 2024.

How will the Central Securities (CET) December 2024 distribution be taxed?

$0.53 is expected to be taxed as ordinary income and $1.52 as long-term capital gain, regardless of whether received in stock or cash.