Tri-Continental Corporation Declares Fourth Quarter Distribution

Rhea-AI Summary

Tri-Continental (NYSE: TY) has declared its fourth quarter distributions. Common stockholders will receive an ordinary income distribution of $0.2850 per share and a capital gain distribution of $1.9520 per share, consisting of $0.3669 in short-term and $1.5851 in long-term gains. Preferred stockholders will receive $0.6250 per share. The distributions will be paid on December 23, 2024, for Common Stock and January 2, 2025, for Preferred Stock. Stockholders can elect to receive the capital gain distribution in various stock/cash combinations. The has maintained dividend payments on common stock for 80 consecutive years.

Positive

• Declared substantial capital gain distribution of $1.9520 per share
• Maintained 80-year consecutive dividend payment track record
• Offers flexible distribution options to shareholders (100% cash, 75/25% or 50/50% shares/cash)

Negative

• None.

Insights

Financial Analyst

The dividend announcement reveals significant distributions, with a total payout of $2.237 per common share, combining an ordinary income of $0.285 and substantial capital gains of $1.952. The capital gains portion, split between short-term ($0.3669) and long-term ($1.5851), offers shareholders flexible payment options including stock-cash combinations.

This distribution maintains the fund's 80-year dividend streak, demonstrating consistent income generation. The flexible distribution structure, allowing shareholders to choose their preferred payment method, provides valuable tax-planning opportunities. The substantial capital gains distribution suggests successful portfolio management and realized gains, though investors should consider the tax implications of these distributions in their investment planning.

BOSTON--(BUSINESS WIRE)-- Tri-Continental Corporation (the “Corporation”) (NYSE: TY) today declared a fourth quarter ordinary income distribution of $0.2850 per share of Common Stock and $0.6250 per share of Preferred Stock. In addition, the Corporation declared a total capital gain distribution of $1.9520 per share of Common Stock. This capital gain distribution consists of short-term capital gains of $0.3669 and long-term capital gains of $1.5851. Distributions on Common Stock will be paid on December 23, 2024, to Common Stockholders of record on December 13, 2024, and dividends on Preferred Stock will be paid on January 2, 2025 to Preferred Stockholders of record on December 13, 2024. The ex-dividend date for both the Common Stock and the Preferred Stock is December 13, 2024. The $0.2850 per share ordinary income distribution and the $1.9520 per share capital gain distribution on the Common Stock is in accordance with the Corporation’s distribution policy. The capital gain distribution, being a special distribution, will be paid in stock except that any stockholder of record as of December 13, 2024, may elect to receive such distribution as follows: 75% in shares and 25% in cash; 50% in shares and 50% in cash; or 100% in cash.

The Corporation has paid dividends on its common stock for 80 consecutive years. The Corporation’s investment manager is Columbia Management Investment Advisers, LLC, a wholly-owned subsidiary of Ameriprise Financial, Inc.

The Corporation’s distributions on common stock will vary. The Corporation’s current distributions (as estimated by the Corporation based on current information) are from the earnings and profits of the Corporation. No amount of the Corporation’s current distribution consists of a return of capital (i.e., a return of some or all of your original investment in the Corporation).

The net asset value of the Corporation’s common shares may not always correspond to the market price of such shares. Shares of many closed-end funds frequently trade at a discount from their net asset value. An investment in the Corporation is subject to stock market risk, which is the risk that market prices for the Corporation’s common shares may decline over short or long periods, adversely affecting the value of an investment in the Corporation.

Securities selected for the Corporation using quantitative methods may perform differently from the market as a whole, and there can be no assurance that this methodology will enable it to achieve its objective. The Corporation’s portfolio investments are subject to market risk, which may affect a single issuer, sector of the economy, industry or the market as a whole. Fixed-income investments, including convertible securities, are subject to credit risk, interest rate risk, and prepayment and extension risk. These risks may be more pronounced for longer-term securities and high-yield securities (“junk bonds”). In general, bond prices rise when interest rates fall and vice versa. Convertible securities are subject to both the risks of their security type prior to conversion as well as their security type after conversion. The Corporation’s use of leverage, including through its preferred stock, exposes it to greater risks due to unanticipated market movements, which may magnify losses and increase volatility of returns.

You should consider the investment objectives, risks, charges, and expenses of the Corporation carefully before investing. A prospectus containing information about the Corporation (including its investment objectives, risks, charges, expenses, and other information) may be obtained by contacting your financial advisor or Columbia Management Investment Services Corp. at 800-345-6611. The prospectus can also be found on the Securities and Exchange Commission’s EDGAR database. The prospectus should be read carefully before investing in the Corporation. There is no guarantee that the Corporation’s investment goals/objectives will be met or that distributions will be made, and you could lose money.

Tri-Continental Corporation is managed by Columbia Management Investment Advisers, LLC.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

Past performance does not guarantee future results.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

© 2024 Columbia Management Investment Advisers, LLC. All rights reserved.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20241119660578/en/

Stockholder contact:

800-345-6611, option 3

Media contact:

Lisa Feuerbach

617-897-9344

lisa.feuerbach@columbiathreadneedle.com

Source: Tri-Continental Corporation

FAQ

What is Tri-Continental 's (TY) fourth quarter 2024 dividend distribution?

Tri-Continental declared a fourth quarter ordinary income distribution of $0.2850 per share of Common Stock and $0.6250 per share of Preferred Stock.

When is the ex-dividend date for Tri-Continental 's (TY) Q4 2024 distribution?

The ex-dividend date for both Common Stock and Preferred Stock is December 13, 2024.

What are the capital gain distribution options for Tri-Continental (TY) shareholders?

Shareholders can elect to receive the capital gain distribution as: 75% in shares and 25% in cash; 50% in shares and 50% in cash; or 100% in cash.