Central Securities Corporation Declares Year-End Distribution

Rhea-AI Summary

Central Securities (NYSE American: CET) has declared a distribution of $2.05 per share on its Common Stock, payable December 20, 2024, to stockholders of record November 15, 2024. The distribution will be paid in additional shares unless stockholders elect to receive cash by December 4, 2024. The number of additional shares will be determined by dividing the distribution amount by the Reinvestment Price, which will be the lower of Market Value or net asset value per share. Of the total distribution, $0.53 is expected to be taxable as ordinary income and $1.52 as long-term capital gain.

Positive

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

Negative

• None.

Insights

Financial Analyst

This significant year-end distribution of $2.05 per share represents a notable payout for Central Securities shareholders. The distribution structure, offering both stock and cash options, provides flexibility for investors while maintaining the fund's capital base. The tax composition - $0.53 as ordinary income and $1.52 as long-term capital gains - is particularly favorable for tax-conscious investors.

The reinvestment mechanism, based on the lower of market value or NAV, protects shareholders from potential overvaluation during the reinvestment process. This distribution approach demonstrates strong liquidity management and shareholder-friendly policies, while the VWAP calculation method for market value ensures fair pricing for the stock distribution.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET), a closed-end investment company, today declared a distribution of $2.05 per share on its Common Stock.

The dividend is payable December 20, 2024 to stockholders of record November 15, 2024. The distribution will be paid in additional shares of stock unless stockholders elect to receive the distribution in cash. The cut-off date for election of cash is December 4, 2024 (the “Cut-Off Date”). Stockholders who own their shares in brokerage accounts should make the election with their broker.

The number of additional shares to which a stockholder will be entitled if he receives the distribution in stock will be computed as follows:

The number of shares held of record on November 15, 2024 will be multiplied by $2.05. This amount will be divided by the Reinvestment Price to determine the number of shares to be received. The Reinvestment Price will be the lower of the Market Value (as defined below) or the net asset value per share on the Cut-Off Date. Cash will be paid in lieu of fractional shares.

The Market Value will be 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, the Cut-Off Date, rounded to two decimal places.

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/20241105946639/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

(212) 698-2020

Source: Central Securities Corporation

FAQ

When is Central Securities (CET) paying its 2024 year-end distribution?

Central Securities will pay its year-end distribution on December 20, 2024, to stockholders of record as of November 15, 2024.

How much is Central Securities 's (CET) 2024 year-end distribution?

Central Securities declared a distribution of $2.05 per share, with $0.53 taxable as ordinary income and $1.52 as long-term capital gain.

What is the deadline to elect cash instead of stock for CET's 2024 distribution?

The cut-off date for stockholders to elect to receive the distribution in cash instead of stock is December 4, 2024.

How will CET's 2024 distribution be paid to shareholders?

The distribution will be paid in additional shares of stock unless stockholders specifically elect to receive the distribution in cash by the December 4, 2024 deadline.