Invesco High Income Trust II, and Invesco Senior Income Trust Declare Dividends

Rhea-AI Summary

Invesco has announced dividend declarations for two of its funds. Invesco High Income Trust II (VLT) will maintain its monthly dividend at $0.09641 per share, while Invesco Senior Income Trust (VVR) will decrease its monthly distribution by 12% to $0.03801 per share, effective January 1, 2025.

Both funds operate under Managed Distribution Plans aimed at providing consistent periodic cash payments to shareholders. VLT's plan, effective since August 2018, is based on an 8.5% distribution rate of the closing market price. The distributions may include investment income, capital gains, and/or return of capital. The ex-date, record date, reinvest date, and payable date for both funds are set for January 17, January 17, January 31, and January 31, 2025, respectively.

Positive

• VLT maintains stable dividend distribution at $0.09641 per share
• Managed Distribution Plans aim to narrow discount between market price and NAV

Negative

• VVR reduces monthly dividend by 12% from $0.0430 to $0.03801 per share
• Distributions may include return of capital, which represents a return of shareholders' investment rather than actual earnings

ATLANTA, Jan. 2, 2025 /PRNewswire/ -- The Board of Trustees (the "Board") of each of Invesco High Income Trust II and Invesco Senior Income Trust (each, a "Fund" and collectively, the "Funds") today declared the following dividends:

EX-DATE	RECORD DATE	REINVEST DATE	PAYABLE DATE
1/17/2025	1/17/2025	1/31/2025	1/31/2025

 

Name of Closed-End Management Investment Company	Ticker	Monthly Dividend Amount Per Share	Change From Prior Distribution	% Change From Prior Distribution
Invesco High Income Trust II	VLT	$0.09641	-	-
Invesco Senior Income Trust	VVR	$0.03801	-0.0050	-12 %

 

The Board of Trustees (the "Board") of Invesco Senior Income Trust (NYSE: VVR) (the "Fund") approved a decrease in the monthly distribution amount payable to common shareholders pursuant to the Fund's Managed Distribution Plan (the "Plan"). Effective January 1, 2025, the Fund will pay its monthly dividend to common shareholders at a stated fixed monthly distribution amount of $0.0380 per share, a decrease from a stated fixed monthly distribution amount of $0.0430 per share.

Effective August 1, 2018, the Board of Invesco High Income Trust II (NYSE: VLT) approved a Managed Distribution Plan (the "VLT Plan") for the Fund, whereby the Fund increased its monthly dividend to common shareholders to a stated fixed monthly distribution amount based on a distribution rate of 8.5 percent of the closing market price per share as of August 1, 2018, the date the VLT Plan became effective. The VVR Plan and the VLT Plan are collectively referred to herein as the "Plans."

The Plans are intended to provide shareholders with a consistent, but not guaranteed, periodic cash payment from each Fund, regardless of when or whether income is earned, or capital gains are realized. The Plans may have the effect of narrowing the discount between each Fund's market price and the net asset value ("NAV") of each Fund's common shares, but there is no assurance that the Plans will be effective in this regard.

If a Fund's investment income is not sufficient to cover the Fund's intended monthly distribution, the Fund will distribute long-term capital gains and/or return of capital in order to maintain its managed distribution level under its Plan. A Fund may at times distribute more than its income and net realized gains; therefore, a portion of the distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that shareholders invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect a Fund's investment performance and should not be confused with "yield" or "income." No conclusions should be drawn about a Fund's investment performance from the amount of the Fund's distributions or from the terms of its Plan.

In order to comply with the requirements of Section 19 of the Investment Company Act of 1940 and an exemptive order granted to the Funds by the Securities and Exchange Commission, each Fund will provide its shareholders of record on each distribution date with a 19(a) Notice and issue an accompanying press release disclosing the sources of its dividend payment when a distribution includes anything other than net investment income. 

The amounts and sources of distributions reported in 19(a) Notices 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 each Fund's investment experience during the remainder of its full fiscal year and may be subject to changes based on tax regulations. Each Fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes. Information on the Funds' 19(a) Notices can be found at www.invesco.com.

The final determination of the source and tax characteristics of all distributions in 2025 will be made after the end of the year.

The Plans will be subject to periodic review by each Fund's Board, and a Fund's Board may terminate or amend the terms of its Plan at any time without prior notice to the Fund's shareholders. The amendment or termination of a Fund's Plan could have an adverse effect on the market price of such Fund's common shares.

The amount of dividends paid by each fund may vary from time to time. Past amounts of dividends are no guarantee of future dividend payment amounts.

Investing involves risk and it is possible to lose money on any investment in the funds.

For additional information, shareholders of the closed end fund may call Invesco at 800-341-2929.

About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive, and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.79 trillion in assets on behalf of clients worldwide as of September 30, 2024. For more information, visit www.invesco.com.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail products. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Each entity is a wholly owned indirect subsidiary of Invesco Ltd.

Note: There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply.

NOT A DEPOSIT l  NOT FDIC INSURED  l  NOT GUARANTEED BY THE BANK  |  MAY LOSE VALUE  |  NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

CONTACT:   Closed-End Funds   800-341-2929   

¹ A portion of this distribution is estimated to be from a return of principal rather than net income. The Section 19 notice referenced below provides more information and can be found on the Invesco website at www.invesco.com.

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SOURCE Invesco Ltd.

FAQ

What is the new dividend amount for Invesco Senior Income Trust (VVR) starting January 2025?

Invesco Senior Income Trust (VVR) will pay a monthly dividend of $0.03801 per share starting January 2025, representing a 12% decrease from the previous distribution of $0.0430.

When are the January 2025 dividends payable for VLT and VVR?

The dividends for both funds are payable on January 31, 2025, with ex-date and record date on January 17, 2025.

What is the distribution rate for Invesco High Income Trust II (VLT) under its Managed Distribution Plan?

VLT's Managed Distribution Plan, effective since August 1, 2018, is based on a distribution rate of 8.5% of the closing market price per share as of that date.

How do the Managed Distribution Plans affect VLT and VVR shareholders?

The Plans aim to provide consistent periodic cash payments to shareholders and may help narrow the discount between market price and NAV, though this is not guaranteed.

What are the potential sources of VLT and VVR dividend distributions?

The distributions may come from investment income, long-term capital gains, and/or return of capital if the fund's investment income is insufficient to cover the intended monthly distribution.