Central Securities Corporation Declares Year-End Distribution

Rhea-AI Summary

Central Securities Corporation (NYSE American: CET) has declared a distribution of $2.25 per share on its Common Stock. The dividend will be payable on December 22, 2022 to stockholders of record on November 14, 2022. Stockholders can choose to receive the distribution in additional shares or in cash, with the cut-off date for cash election set for December 1, 2022. The cash portion of the distribution consists of $0.50 taxable as ordinary income and $1.75 as long-term capital gain.

Positive

• Declared distribution of $2.25 per share enhances shareholder value.
• Tax treatment remains favorable irrespective of stock or cash choice.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET), a closed-end investment company, today declared a distribution of $2.25 per share on its Common Stock.

The dividend is payable December 22, 2022 to stockholders of record on November 14, 2022. 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 1, 2022 (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 14, 2022 will be multiplied by $2.25. 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 $2.25 per share to be paid, $0.50 is expected to be taxable as ordinary income and $1.75 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 2022 will be available after year end.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221103006236/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

(212) 698-2020

Source: Central Securities Corporation

FAQ

What is the dividend amount declared by Central Securities Corporation (CET)?

Central Securities Corporation declared a dividend of $2.25 per share.

When is the dividend payable for CET stock?

The dividend is payable on December 22, 2022.

What is the record date for the CET dividend distribution?

The record date for the dividend distribution is November 14, 2022.

How can stockholders receive the distribution from CET?

Stockholders can receive the distribution in additional shares or in cash.

What is the cut-off date for electing cash for the CET dividend?

The cut-off date for electing cash is December 1, 2022.

What portion of the CET dividend is taxable?

Of the $2.25 per share, $0.50 is taxable as ordinary income and $1.75 as long-term capital gain.