RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. and RiverNorth Capital and Income Fund, Inc. Announce Preferred Dividends
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Insights
The declaration of preferred dividends by RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. and RiverNorth Capital and Income Fund, Inc. represents a noteworthy event for current and potential investors. Preferred dividends are payments made to holders of preferred shares, which typically have a fixed dividend rate and take precedence over common stock dividends. In this case, the dividends range from 4.375% to 6.00% based on the liquidation preference of $25.00 per share. These figures are significant as they provide insights into the funds' cash flow and their ability to generate income for investors.
From a financial perspective, the distribution rates can be compared to industry benchmarks to assess the attractiveness of these preferred shares. The declared rates seem competitive, potentially indicating a strong performance by the funds. However, investors should be aware that distributions may be paid from various sources, including capital gains and return of capital, which could affect the sustainability of these dividends over the long term.
It is crucial for investors to understand the tax implications of dividend distributions. The announcement mentions that distributions may be comprised of ordinary income, net realized short-term capital gains, net realized long-term capital gains and return of capital. The tax treatment of these components varies, with ordinary income typically taxed at higher rates than qualified dividends or long-term capital gains. The return of capital is not taxed immediately but reduces an investor's cost basis, potentially increasing capital gains when the shares are sold.
Investors must consult with tax professionals to ensure they understand the potential tax liabilities associated with these dividends. Furthermore, the funds provide a Section 19(a) notice when distributions include anything other than net investment income, which is essential for investors to estimate their tax obligations accurately.
The funds' assets under management (AUM) of $4.9 billion as of November 30, 2023, indicate the scale of RiverNorth's operations and its significance in the market. The AUM includes the effects of leverage and investments in affiliated funds, which suggests that the firm employs strategies that may increase the funds' exposure to market volatility. Leverage can amplify returns but also increases risk, which should be a consideration for risk-averse investors.
Moreover, the funds' focus on opportunistic investment strategies in niche markets is an attempt to exploit market inefficiencies. While this can lead to higher returns, it also requires specialized knowledge and carries a higher risk profile. Investors should consider whether such strategies align with their investment objectives and risk tolerance.
Ex Date |
Record Date |
Payable Date |
||
February 1, 2024 |
February 2, 2024 |
February 15, 2024 |
Fund Name |
Preferred Stock Series |
NYSE |
Distribution
|
RiverNorth Opportunities Fund, Inc. |
|
RIVPRA |
|
RiverNorth/DoubleLine Strategic
|
|
OPPPRA |
|
RiverNorth/DoubleLine Strategic
|
|
OPPPRB |
|
RiverNorth Capital and Income Fund, Inc. |
|
RMPL |
|
RiverNorth Capital Management, LLC is an investment management firm founded in 2000. With
The distributions were calculated based on the preferred shares Liquidation Preference of
This data is for information only and should not be construed as an official tax form, nor should it be considered tax or investment advice. RiverNorth is not a tax advisor and investors should consult a tax professional for guidance regarding their specific tax situation. Please consult your legal or tax advisor.
Investors should consider the Fund's investment objective, risks, charges, and expenses carefully before investing. The prospectus should be read carefully before investing. For more information, please read the prospectus, call your financial professional or call 844.569.4750.
Investing in the Fund involves certain risks, including loss of principal, that are described in the "Risks" section of each Prospectus.
Marketing services provided by ALPS Distributors Inc. ALPS and RiverNorth are not affiliated.
1 Firm AUM reflects Managed Assets which includes the effects of leverage and investments in affiliated funds.
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC. DoubleLine® is a registered trademark of DoubleLine Capital LP.
©2000-2024 RiverNorth Capital Management, LLC. All rights reserved.
OPP000127
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RiverNorth CEF Investor Relations
800-646-0148, Option 1
CEF@rivernorth.com
Source: RiverNorth Capital Management, LLC
FAQ
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