Special Opportunities Fund Declares Distributions For First Quarter of 2025

Rhea-AI Summary

Special Opportunities Fund (NYSE: SPE) has announced its Board's declaration of monthly distributions for Q1 2025 under its managed distribution plan. The Fund aims to distribute to common stockholders at an annual rate of 8% (0.6667% monthly) for 2025, based on the net asset value of $16.47 per common share as of December 31, 2024.

The declared monthly distributions are $0.1098 per share, payable on January 31, February 28, and March 31, 2025, with corresponding record dates of January 21, February 18, and March 18, 2025. The distributions will include net investment income, net realized capital gains, and/or return of capital. The Board retains the right to amend or terminate the plan without prior notice.

Positive

• Consistent monthly dividend payments of $0.1098 per share
• 8% annual distribution rate based on NAV
• Structured managed distribution plan in place

Negative

• Distributions may include return of capital, which isn't actual earnings
• Plan can be terminated or amended without prior notice to stockholders

Insights

Financial Analyst

The Special Opportunities Fund's announcement of quarterly distributions reveals a strategic 8% annual distribution rate based on a $16.47 NAV, translating to monthly payments of $0.1098 per share. This managed distribution plan demonstrates the fund's commitment to providing predictable income streams to shareholders. The plan's flexibility to distribute from various sources - including investment income, capital gains and return of capital - offers tax-planning advantages but requires careful monitoring of the distribution composition. The consistent monthly distribution amount suggests stability in the fund's distribution strategy, though investors should note that the source of distributions (whether from earnings or return of capital) impacts the fund's long-term sustainability and tax implications. The January through March 2025 payment schedule provides clarity for income-focused investors' cash flow planning. However, the Board's discretion to modify or terminate the plan introduces an element of uncertainty that warrants attention.

Investment Tax Specialist

The distribution announcement carries significant tax implications that investors must carefully consider. The varied potential sources of distributions - net investment income, realized capital gains and return of capital - each have distinct tax treatments. Return of capital distributions reduce the cost basis of shares and are not immediately taxable, while distributions from earnings are typically taxable in the current year. The Fund's commitment to provide distribution source estimates through notices, coupled with the formal Form 1099-DIV reporting, enables proper tax planning. The monthly distribution structure at $0.1098 per share allows for tax-efficient income smoothing throughout the year. However, investors should maintain detailed records of distribution classifications, as return of capital portions could impact future capital gains calculations upon sale of shares.

NEW YORK--(BUSINESS WIRE)-- Special Opportunities Fund, Inc. (NYSE: SPE) (the “Fund”) today announced that the Fund’s Board of Directors (the “Board”) has declared the next three monthly distributions under the Fund’s managed distribution plan.

Under the Fund’s managed distribution plan, the Fund intends to make monthly distributions to common stockholders at an annual rate of 8% (or 0.6667% per month) for 2025, based on the net asset value of $16.47 of the Fund’s common shares as of December 31, 2024.

The next three distributions declared under the managed distribution plan are as follows:

Month	Amount	Record Date	Payable Date
January	$0.1098	January 21, 2025	January 31, 2025
February	$0.1098	February 18, 2025	February 28, 2025
March	$0.1098	March 18, 2025	March 31, 2025

Under the managed distribution plan, the Fund will distribute net investment income, net realized capital gains and/or return of capital. No conclusions should be drawn about the Fund’s investment performance from the amount of the distributions. The Board may amend the terms of the managed distribution plan or terminate the plan at any time without prior notice to stockholders.

The Fund will issue a notice to common stockholders that will provide an estimate of the composition of each distribution. For tax reporting purposes the actual composition of the total amount of distributions for each year will continue to be provided on a Form 1099-DIV issued after the end of the year.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250106717604/en/

Thomas Antonucci, Bulldog Investors LLP (1-201-566-0092)

Source: Special Opportunities Fund, Inc.

FAQ

What is Special Opportunities Fund's (SPE) dividend amount for Q1 2025?

SPE will pay $0.1098 per share monthly for January, February, and March 2025.

What is SPE's annual distribution rate for 2025?

SPE's annual distribution rate is 8% (0.6667% monthly) based on the net asset value of $16.47 as of December 31, 2024.

When are SPE's Q1 2025 dividend payment dates?

The payment dates are January 31, February 28, and March 31, 2025.

What is the record date for SPE's January 2025 distribution?

The record date for SPE's January 2025 distribution is January 21, 2025.

How are SPE's distributions funded under the managed distribution plan?

The distributions are funded through a combination of net investment income, net realized capital gains, and/or return of capital.