Western Asset Mortgage Capital Corporation Announces Tax Characteristics of 2022 Dividends

Rhea-AI Summary

Western Asset Mortgage Capital Corporation (NYSE: WMC) announced the tax treatment of its common stock dividends declared in 2022, aiding stockholders with tax reporting obligations. Stockholders will receive IRS Form 1099-DIV from their brokers, reflecting the following distributions:

• January 26, 2022: $0.0600 per share
• April 26, 2022: $0.0400 per share
• July 25, 2022: $0.0400 per share
• October 26, 2022: $0.4000 per share

The total qualified dividends and non-qualified dividends are provided, along with a suggestion to consult tax advisors for personalized tax impacts.

Positive

• Provides clarity on tax treatment of dividends for 2022.
• Maintains consistent dividend payments which may instill investor confidence.

Negative

• Potential implications of tax reporting may complicate investor returns.

PASADENA, Calif.--(BUSINESS WIRE)-- Western Asset Mortgage Capital Corporation (the “Company”) (NYSE: WMC) announced today the tax treatment of its common stock dividends declared in 2022.

The below information is provided to assist the Company’s stockholders with tax reporting requirements related to dividend distribution of taxable income by the Company. Stockholders should receive IRS Form 1099-DIV containing this information from their brokers, transfer agents or other institutions. These tax statements should be reviewed to ensure that they agree with the information provided below.

Tax Treatment of Distributions

The Federal Income Tax classification of the 2022 dividend distributions on the Company’s common stock, as it is expected to be reported on Form 1099-DIV, is set forth in the following table:

								Ordinary Dividends
Record Date		Payment Date		CUSIP		Distribution Per Share (1,2,3)		Total		Non-Qualified Dividends (4)		Qualified Dividends (5)		Capital Gain Distributions		Return of Capital
12/31/2021		1/26/2022		#95790D105		$0.06000		$0.06000		$0.03742		$0.02258		$0.00000		$0.00000
4/4/2022		4/26/2022		#95790D105		$0.04000		$0.04000		$0.02494		$0.01506		$0.00000		$0.00000
7/1/2022		7/25/2022		#95790D105		$0.04000		$0.04000		$0.02494		$0.01506		$0.00000		$0.00000
10/3/2022		10/26/2022		#95790D204		$0.40000		$0.40000		$0.24944		$0.15056		$0.00000		$0.00000
1/3/2023		1/26/2023		#95790D204		$0.40000		$0.40000		$0.24944		$0.15056		$0.00000		$0.00000

(1) - The per share dividend distribution information provided above for the dividends paid on January 26, 2022, April 26, 2022, and July 25, 2022 have not been adjusted to reflect the 1-for-10 reverse stock split that occurred on July 11, 2022.

(2) - The cash distributions made on January 26, 2022 with a record date of December 31, 2021 are treated as received by stockholders on January 26, 2022 and taxable in calendar year 2022.

(3) - The cash distributions made on January 26, 2023 with a record date of January 3, 2023 are treated as received by stockholders on December 31, 2022.

(4) - Non-Qualified Dividends shows the amount that may be eligible for the 20% qualified business income decuction under Section 199A.

(5) - Qualified Dividends represents a dividend made from our taxable REIT subsidiary to the REIT.

Consult Your Tax Advisor

Stockholders may have additional reporting obligations to the Internal Revenue Service and/or other tax authorities.

The U.S. federal income tax treatment of holding The Company’s common stock to any particular stockholder will depend on the stockholder’s particular tax circumstances. You are urged to consult your tax advisor regarding the U.S. federal, state, local and foreign income and other tax consequences to you, in light of your particular investment or tax circumstances, of acquiring, holding and disposing of the Company’s common stock.

The Company does not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S., federal, state or local tax penalties. Please consult your advisor as to any tax, accounting or legal statements made herein.

ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION

Western Asset Mortgage Capital Corporation is a real estate investment trust that invests in, acquires and manages a diverse portfolio of assets, with a focus on residential real estate related investments, including non-qualified mortgage loans, non-agency RMBS and other related investments. The Company’s investment strategy may change, subject to the Company’s stated investment guidelines, and is based on its manager Western Asset Management Company, LLC's perspective of which mix of portfolio assets it believes provide the Company with the best risk-reward opportunities at any given time. The Company is externally managed and advised by Western Asset Management Company, LLC, an investment advisor registered with the Securities and Exchange Commission and a wholly-owned subsidiary of Franklin Resources, Inc. Please visit the Company’s website at www.westernassetmcc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230203005407/en/

Investor Relations Contact:

Larry Clark

Financial Profiles, Inc.

(310) 622-8223

lclark@finprofiles.com

Source: Western Asset Mortgage Capital Corporation

FAQ

What is the dividend payment date for WMC in 2022?

The dividend payment dates for WMC in 2022 were January 26, April 26, July 25, and October 26.

How much was the WMC dividend declared on October 26, 2022?

WMC declared a dividend of $0.4000 per share on October 26, 2022.

What are the tax implications for WMC dividends?

WMC dividends are subject to federal income tax, and stockholders should consult IRS Form 1099-DIV for detailed tax treatment.

Are WMC dividends qualified or non-qualified?

The 2022 dividends include both qualified and non-qualified categories, with specific amounts detailed in the announcement.