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 distribution details for November 1, 2024. The monthly distribution of $0.1130 per share consists of 3.47% from net investment income, 10.31% from short-term capital gains, and 86.22% from long-term capital gains. The Fund's performance metrics show an average annual total return of 11.94% for the 5-year period and a cumulative total return of 26.80% for the fiscal period through September 30, 2024. The Fund maintains a managed distribution policy aimed at delivering long-term total returns through regular monthly distributions.

Positive

• Strong 5-year average annual total return of 11.94%
• Impressive cumulative total return of 26.80% for the fiscal period
• No return of capital in distributions, indicating earnings cover payouts

Negative

• Low portion (3.47%) of distribution from net investment income
• Heavy reliance (86.22%) on long-term capital gains for distribution

Insights

Financial Analyst

This distribution announcement provides key insights into SCD's financial performance and distribution strategy. The fund shows strong performance metrics with an 11.94% 5-year average annual total return and a 26.80% cumulative total return for the fiscal period. The current annualized distribution rate of 7.69% is notable, primarily funded through long-term capital gains (86.22% of distribution).

The fund's managed distribution policy aims to deliver long-term returns through fixed monthly payments of $0.1130 per share. However, investors should note that most of the distribution comes from realized capital gains rather than investment income, which could impact tax considerations. The lack of return of capital in the distribution breakdown indicates effective portfolio management in meeting distribution obligations through genuine returns rather than capital depletion.

Tax Expert

The distribution breakdown reveals important tax implications for investors. With 86.22% coming from long-term capital gains, 10.31% from short-term gains and only 3.47% from net investment income, shareholders will face different tax treatments for each component. Long-term capital gains typically receive preferential tax rates, while short-term gains and investment income are taxed at ordinary income rates.

The absence of return of capital is positive from a tax perspective, as it means investors aren't receiving their own capital back, which would require cost basis adjustments. The Form 1099-DIV will be important for accurate tax reporting, especially given the complex mix of distribution sources.

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 November 1, 2024, and for the fiscal year 2024 year-to-date are as follows:

Estimated Allocations for the October Monthly Distribution as of September 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	$0.0039	$0.0116	$0.0974	$0.0000
100.00%	3.47%	10.31%	86.22%	0.00%

Cumulative Estimated Allocations fiscal year-to-date as of September 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
$1.1300	$0.0392	$0.1165	$0.9743	$0.0000
100.00%	3.47%	10.31%	86.22%	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 9/30/2024)1	Annualized Distribution Rate (as a percentage of NAV as of 9/30/2024)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 9/30/2024)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 9/30/2024)4
11.94%	7.69%	26.80%	6.41%

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 September 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 September 30, 2024.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from November 30, 2023 through September 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 September 30, 2024, as a percentage of the Fund’s NAV as of September 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/20241101345054/en/

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

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

FAQ

What is the current monthly distribution amount for LMP Capital and Income Fund (SCD)?

The current monthly distribution amount for SCD is $0.1130 per share, payable on November 1, 2024.

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

SCD's 5-year average annual total return in relation to NAV is 11.94% as of September 30, 2024.

How is SCD's current distribution composed?

SCD's distribution consists of 3.47% from net investment income, 10.31% from short-term capital gains, and 86.22% from long-term capital gains.