Royce Small-Cap Trust, Inc. (formerly Royce Value Trust, Inc.) (NYSE-RVT) declares Second Quarter Common Stock Distribution of $0.28 Per Share
Royce Small-Cap Trust (NYSE-RVT) has declared a second-quarter distribution of $0.28 per share on its common stock, payable in cash or additional shares on June 24, 2024. The distribution follows the Fund's policy of quarterly payouts at an annual rate of 7% based on the average NAV of the past four quarters. The distribution, mostly derived from long-term gains (77%), reflects a solid performance with an 11.93% average annual return over five years. Investors should note that these figures are estimates and the actual tax implications will be detailed in the Form 1099-DIV.
- Quarterly distribution of $0.28 per share, payable in cash or additional shares.
- Annual distribution rate of 7% based on the rolling average of the prior four quarter-end NAVs.
- 77% of the distribution is derived from net realized long-term gains.
- Average annual total return of 11.93% over the past five years.
- No return of capital in the distribution, indicating strong income sources.
- Only 3% of the distribution comes from net investment income.
- Cumulative total return of 6.31% for the fiscal year is lower than the five-year average return.
- Current fiscal year distribution rate of 6.54% is lower than the projected annual rate of 7%.
Insights
Royce Small-Cap Trust's announcement of a quarterly distribution offers insights into its financial health and strategy. The distribution of
The current distribution is sourced largely from net realized long-term gains (
However, the Fund's reliance on realized gains can be a double-edged sword. In periods of market volatility or downturns, the ability to generate such gains might be compromised, potentially affecting future distributions. It's essential for investors to monitor the Fund's portfolio performance and market conditions closely to assess any potential risks to their income stream.
The financial performance indicators provided, such as an
The decision to offer distributions payable in either cash or additional shares provides flexibility to shareholders, catering to different investment preferences. This kind of policy can attract a diverse investor base, from those seeking regular income to those looking to reinvest and compound their holdings over time.
Offering a choice could also indicate confidence from the Fund's management in its share price stability and future performance. For investors, opting for additional shares can be advantageous if they believe the Fund's shares are undervalued or have long-term growth potential. Conversely, cash payments might be preferred by those in need of liquidity or income.
It's important to recognize that while the distribution policy appears generous, it is subject to change based on the Board of Directors' discretion. Investors must be aware that changes in distribution policies can impact their expected returns and might necessitate adjustments in their investment strategies.
The Fund has adopted a Distribution Policy of paying quarterly distributions on its Common Stock. Distributions are being made at the annual rate of
The Fund's estimated sources of the distribution to be paid on June 24, 2024 and for 2024 year-to-date are as follows:
Estimated Allocations as of May 31, 2024
Fund | Distribution Per Share | Net Investment | Net Realized Short-Term Gains | Net Realized Long-Term Gains | Return of |
RVT |
Estimated Allocations for 2024 through May 31, 2024
Fund | Distribution Per Share | Net Investment | Net Realized Short-Term Gains | Net Realized Long-Term Gains | Return of |
RVT |
You should not draw any conclusions about the Fund's investment performance from the amount of the current distribution or from the terms of the Fund's Distribution Policy. The amounts and sources of distributions reported herein are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Fund Performance and Distribution Rate Information:
Fund | Average Annual | Annualized Current | Cumulative Total | Cumulative Fiscal |
RVT | 11.93 % | 6.54 % | 6.31 % | 3.21 % |
1 Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended May 31, 2024. Annual NAV Total Return is the percentage change in the Fund's NAV over a year, assuming reinvestment of distributions paid.
2 The Annualized Current Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of May 31, 2024.
3 Cumulative Total Return is the percentage change in the Fund's NAV from December 31, 2023 to May 31, 2024, assuming reinvestment of distributions paid.
4 The Cumulative Fiscal Year Distribution Rate is the dollar value of distributions for the fiscal year period (January 1, 2024 to May 31, 2024), as a percentage of the Fund's NAV as of May 31, 2024.
About Royce Small-Cap Trust, Inc.
Royce Small-Cap Trust, Inc. (the "Fund") is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the New York Stock Exchange. The Fund's primary investment goal is long-term capital growth. Effective May 1, 2024, the Fund invests at least
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SOURCE Royce & Associates
FAQ
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