Central Securities Corporation Declares Year-End Distribution

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Central Securities Corporation (NYSE American: CET) has declared a distribution of $1.65 per share on its Common Stock. The dividend is payable on December 21, 2023, to stockholders of record on November 13, 2023. Stockholders can choose to receive the distribution in cash or additional shares of stock. The Cut-Off Date for election of cash is December 5, 2023.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET), a closed-end investment company, today declared a distribution of $1.65 per share on its Common Stock.

The dividend is payable December 21, 2023 to stockholders of record November 13, 2023. 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 5, 2023 (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 13, 2023 will be multiplied by $1.65. 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 $1.65 per share to be paid, $0.45 is expected to be taxable as ordinary income and $1.20 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 2023 will be available after year end.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231103790270/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

(212) 698-2020

Source: Central Securities Corporation

FAQ

What is the dividend declared by Central Securities Corporation?

Central Securities Corporation has declared a dividend of $1.65 per share on its Common Stock.

When will the dividend be paid?

The dividend will be payable on December 21, 2023.

Who is eligible to receive the dividend?

Stockholders of record on November 13, 2023, are eligible to receive the dividend.

Can stockholders choose to receive the dividend in cash?

Yes, stockholders can choose to receive the distribution in cash or additional shares of stock.

What is the Cut-Off Date for election of cash?

The Cut-Off Date for election of cash is December 5, 2023.

How will the number of additional shares be determined?

The number of additional shares to be received will be computed based on the number of shares held of record on November 13, 2023, multiplied by $1.65, divided by the Reinvestment Price.

What is the tax treatment of the distribution?

Of the $1.65 per share to be paid, $0.45 is expected to be taxable as ordinary income and $1.20 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.

When will the final tax breakdown be available?

The final tax breakdown of all amounts paid during 2023 will be available after year end.