Central Securities Corporation Declares Year-End Distribution

Rhea-AI Summary

Central Securities Corporation (AMEX:CET) has announced a $3.55 per share dividend payable on December 22, 2021. Stockholders recorded by November 15, 2021 can receive the distribution in additional shares or cash, with a cut-off date for cash election on December 2, 2021. The dividend includes $0.87 as ordinary income and $2.68 as long-term capital gain, regardless of the payment method. The final tax treatment will be detailed post-year-end.

Positive

• Announced a significant dividend of $3.55 per share.
• Provides optionality for stockholders to choose cash or stock.

Negative

• A portion of the dividend ($0.87) is taxable as ordinary income.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET), a closed-end investment company, today declared a distribution of $3.55 per share on its Common Stock.

The dividend is payable December 22, 2021 to stockholders of record November 15, 2021. 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 2, 2021 (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, 2021 will be multiplied by $3.55. 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 $3.55 per share to be paid, $0.87 is expected to be taxable as ordinary income (including $0.064 of short-term capital gain) and $2.68 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 2021 will be available after year end.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006208/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 $3.55 per share.

When is the dividend payable for CET shares?

The dividend is payable on December 22, 2021.

What is the record date for stockholders to receive the CET dividend?

The record date is November 15, 2021.

What are the tax implications of the CET dividend?

Of the $3.55 dividend, $0.87 is taxable as ordinary income and $2.68 as long-term capital gain.