DoubleLine Opportunistic Credit Fund Declares February 2024 Distribution

Rhea-AI Summary

The DoubleLine Opportunistic Credit Fund (DBL) has declared a distribution of $0.11 per share for February 2024, with ex-dividend, record, and payment dates set by the Fund's Board of Trustees. The distributions may include ordinary income, long-term capital gains, or return of capital, and the tax characteristics will be determined at the end of the taxable year. Shareholders will receive a Form 1099-DIV in early 2025 to report the distributions on their tax returns.

Insights

Financial Analyst

The declaration of a monthly distribution of $0.11 per share by the DoubleLine Opportunistic Credit Fund represents a tangible return to investors and indicates the Fund's current cash flow status. The distribution frequency and amount are key factors for income-focused investors. Such announcements can influence the Fund's attractiveness, potentially affecting its share price and trading volume around the ex-dividend date. Investors need to own the stock before the ex-dividend date to receive the distribution, which can lead to increased buying pressure prior to this date.

It's important to analyze the sustainability of these distributions by looking at the Fund's earnings reports and payout ratios. If the distributions are consistently higher than earnings, this could signal that the Fund is returning capital to maintain its dividend yield, which might not be sustainable in the long run. Conversely, if the Fund's earnings support the distribution level, it may be viewed as a sign of financial health and stability.

Tax Advisor

For shareholders, the tax implications of the Fund's distributions are significant. The Fund's notice that distributions may include ordinary income, long-term capital gains, or return of capital is a critical piece of information. Ordinary income is taxed at a higher rate than qualified dividends or long-term capital gains. A return of capital is not taxed immediately but reduces the investor's cost basis, potentially increasing capital gains when the shares are sold. Shareholders should anticipate the Form 1099-DIV, which will clarify the tax treatment of these distributions and plan accordingly for potential tax liabilities.

Understanding the tax characteristics of the distributions is essential for investors to optimize their after-tax return. Investors in higher tax brackets, in particular, may seek investments with favorable tax treatments, such as those generating qualified dividends or long-term capital gains.

TAMPA, Fla., Feb. 1, 2024 /PRNewswire/ -- The DoubleLine Opportunistic Credit Fund (the "Fund"), which is traded on the New York Stock Exchange under the symbol DBL, this week declared a distribution of $0.11 per share for the month of February 2024. The distribution is subject to the following ex-dividend, record and payment dates set by the Fund's Board of Trustees.

February 2024
Declaration	Thursday, Feb. 1, 2024
Ex-Dividend	Wednesday, Feb. 14, 2024
Record	Thursday, Feb. 15, 2024
Payment	Thursday, Feb. 29, 2024

This news release is not for tax reporting purposes. The release has been issued to announce the amount and timing of the distributions declared by the Board of Trustees. There is a possibility that distributions may include ordinary income, long-term capital gains or return of capital. The amount of distributable income and the tax characteristics of the distributions are determined at the end of the taxable year. In early 2025, the Fund will send shareholders a Form 1099-DIV specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder's tax return.

About DoubleLine Opportunistic Credit Fund

The DoubleLine Opportunistic Credit Fund (the "Fund") is a diversified, closed-end management investment company. The Fund's investment objective is to seek high total investment return by providing a high level of current income and the potential for capital appreciation. There is no guarantee that the Fund will achieve its investment objective. Investing in the Fund involves the risk of principal loss.

About DoubleLine Capital LP

DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by email at info@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.

To read about the DoubleLine Opportunistic Credit Fund, please access the Annual Report at www.doubleline.com or call 877-DLINE11 (877-354-6311) to receive a copy. Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. An investment in the Fund should not constitute a complete investment program.

This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.

Fund investing involves risk. Principal loss is possible.

Shares of closed-end investment companies frequently trade at a discount to their net asset value, which may increase investors' risk of loss. This risk may be greater for investors expecting to sell their shares in a relatively short period after the completion of the public offering. There are risks associated with investment in the fund.

Investments in debt securities typically decline in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Past performance is no guarantee of future results. The fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. Investments in lower rated and non-rated securities present a great risk of loss to principal and interest than higher rated securities. Investment strategies may not achieve the desired results due to implementation lag, other timing factors, portfolio management decisions-making, economic or market conditions or other unanticipated factors. In addition, the Fund may invest in other asset classes and investments such as, among others, REITs, credit default swaps, short sales, derivatives and smaller companies which include additional risks. The DoubleLine Opportunistic Credit Fund (the "Fund") is a diversified, closed-end management investment company. 

This material may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and DoubleLine undertakes no obligation to update the views expressed herein. While we have gathered this information from sources believed to be reliable, DoubleLine cannot guarantee the accuracy of the information provided. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information included herein is not an indication of the Fund's future portfolio composition.

Distributions include all distribution payments regardless of source and may include net income, capital gains, and/or return of capital (ROC). ROC should not be confused with yield or income. A Fund's Section 19a-1 Notice, if applicable, contains additional distribution composition information and may be obtained by visiting www.doubleline.com. Final determination of a distribution's tax character will be made on Form 1099 DIV and sent to shareholders. On a tax basis, as of Jan. 31, 2024, the estimated component of the cumulative distribution for the fiscal year to date would include an estimated return of capital of $0.148 (34%) per share. This amount is an estimate and the actual amounts and sources for tax reporting purposes may change upon final determination of tax characteristics and may be subject to changes based on tax regulations.

Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.

Foreside Funds Services, LLC provides marketing review services for DoubleLine Capital LP.

©2024 DoubleLine Capital LP.

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SOURCE DoubleLine

FAQ

What is the distribution amount declared by the DoubleLine Opportunistic Credit Fund for February 2024?

The Fund has declared a distribution of $0.11 per share for February 2024.

What are the ex-dividend, record, and payment dates set by the Fund's Board of Trustees?

The ex-dividend date is Wednesday, Feb. 14, 2024, the record date is Thursday, Feb. 15, 2024, and the payment date is Thursday, Feb. 29, 2024.

What tax reporting purposes does the news release cover?

The news release is not for tax reporting purposes, but it announces the amount and timing of the distributions declared by the Board of Trustees.

What will shareholders receive in early 2025 from the Fund?

Shareholders will receive a Form 1099-DIV in early 2025 specifying how the distributions paid by the Fund during the prior calendar year should be characterized for reporting on their tax returns.