LMP Capital and Income Fund Inc. (SCD or “the Fund”; CUSIP: 50208A102) Announces Notification of Sources of Distributions

Rhea-AI Summary

LMP Capital and Income Fund Inc. (NYSE: SCD) has announced its December 2024 distribution details and fiscal year-to-date allocations. The Fund's December monthly distribution of $0.1130 per share comprises 8.21% from net investment income, 9.12% from short-term capital gains, and 82.67% from long-term capital gains.

For the fiscal year 2024, the cumulative distribution of $1.3560 per share includes 4.16% from net investment income, 10.18% from short-term capital gains, and 85.65% from long-term capital gains. The Fund's performance metrics show a 12.97% average annual total return over five years and a 35.75% cumulative total return for the fiscal period through November 30, 2024.

Positive

• 35.75% cumulative total return for the fiscal period
• 12.97% average annual total return over 5 years
• Strong distribution rate of 7.27% annualized
• No return of capital in distributions, indicating earnings cover payouts

Negative

• None.

Insights

Financial Analyst

The fund's distribution details reveal significant insights about its performance and strategy. The $0.1130 monthly distribution predominantly comes from long-term capital gains (82.67%), with smaller allocations from short-term gains and investment income. The fund's impressive 12.97% 5-year average annual total return and 35.75% cumulative total return demonstrate strong historical performance. The 7.27% annualized distribution rate appears sustainable given the fund's returns. However, investors should note that the high proportion of capital gains in distributions suggests the fund actively trades its portfolio, which could impact tax efficiency. The managed distribution policy provides predictable income but may not always align with actual earnings, though currently no return of capital is being distributed, indicating healthy underlying performance.

Tax Expert

The distribution composition has important tax implications for investors. With 85.65% of fiscal year-to-date distributions classified as long-term capital gains, shareholders benefit from preferential tax treatment compared to ordinary income. The smaller portions of short-term gains (10.18%) and net investment income (4.16%) will be taxed at higher ordinary income rates. Notably, the absence of return of capital distributions is positive, as it means the fund isn't eroding its capital base to maintain its distribution policy. For tax planning purposes, investors should anticipate receiving detailed allocation information in Form 1099-DIV, which will be important for accurate tax reporting.

NEW YORK--(BUSINESS WIRE)-- LMP Capital and Income Fund Inc. [NYSE: SCD]

Notification of Sources of Distributions
Pursuant to Section 19(a) of the Investment Company Act of 1940

The Fund’s estimated sources of the distribution to be paid December 31, 2024, and for the fiscal year 2024 year-to-date are as follows:

Estimated Allocations for the December Monthly Distribution as of November 30, 2024:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.1130	$0.0093	$0.0103	$0.0934	$0.0000
100.00%	8.21%	9.12%	82.67%	0.00%

Cumulative Estimated Allocations fiscal year-to-date as of November 30, 2024, for the fiscal year ending November 30, 2024:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$1.3560	$0.0565	$0.1381	$1.1615	$0.0000
100.00%	4.16%	10.18%	85.65%	0.00%

Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution or from the terms of the Plan. SCD estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the SCD distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect SCD’s investment performance and should not be confused with ‘yield’ or ‘income’. 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 a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund’s distributions for federal income tax purposes.

Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on 11/30/2024)1	Annualized Distribution Rate (as a percentage of NAV as of 11/30/2024)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 11/30/2024)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 11/30/2024)4
12.97%	7.27%	35.75%	7.27%

Fund Performance and Distribution Rate Information:

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 through November 30, 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 Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV as of November 30, 2024.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from November 30, 2023 through November 30, 2024, assuming reinvestment of distributions paid.
4. The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period November 30, 2023 through November 30, 2024, as a percentage of the Fund’s NAV as of November 30, 2024.

This Fund has a managed distribution policy that seeks to deliver the Fund’s long-term total return potential through regular monthly distributions declared at a fixed rate per common share. Distributions may be paid in part or in full from net investment income, realized capital gains and by returning capital, or a combination thereof. Shareholders should note, however, that if a Fund’s aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund’s assets and will constitute a return of the shareholder’s capital. A return of capital is not taxable; rather it reduces a shareholder’s tax basis in his or her shares of the Fund. The Board of Directors of the Fund may terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund’s shares.

For further information on LMP Capital and Income Fund Inc.,
please visit our web site at: www.franklintempleton.com/investments/options/closed-end-funds

Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Funds.

Category: Distribution Related

Source: Franklin Resources, Inc.

Source: Legg Mason Closed End Funds

View source version on businesswire.com: https://www.businesswire.com/news/home/20241231215315/en/

Investor Contact: Fund Investor Services 1-888-777-0102

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds

FAQ

What is SCD's December 2024 distribution amount per share?

SCD's December 2024 distribution amount is $0.1130 per share.

What is SCD's total distribution for fiscal year 2024?

SCD's total distribution for fiscal year 2024 is $1.3560 per share.

What is SCD's 5-year average annual total return as of November 2024?

SCD's 5-year average annual total return is 12.97% as of November 30, 2024.

What is SCD's annualized distribution rate as of November 2024?

SCD's annualized distribution rate is 7.27% as of November 30, 2024.

How much of SCD's December 2024 distribution comes from long-term capital gains?

82.67% of SCD's December 2024 distribution comes from long-term capital gains.