ABRDN INCOME CREDIT STRATEGIES FUND 5.25% SERIES A PERPETUAL PREFERRED SHARES DECLARE QUARTERLY DIVIDEND

Rhea-AI Summary

abrdn Income Credit Strategies Fund (NYSE: ACP PRA) declared a quarterly cash distribution of $0.328125 per share on its 5.250% Series A Perpetual Preferred Shares, payable on December 31, 2025 to holders of record on December 19, 2025 (ex-dividend date December 19, 2025).

The Series A preferred carries an annual dividend rate of $1.3125 per share, was issued on May 10, 2021 at $25.00 per share, and is rated A2 by Moody's. Distributions may include income, realized gains, or return of capital; final tax characterization will be reported on Form 1099-DIV in January 2026. Investors are reminded that closed-end fund share prices and NAV fluctuate and past performance is not a guarantee of future results.

Positive

• Quarterly cash distribution of $0.328125 per Series A share
• Annual dividend rate of $1.3125 per Series A share
• Distribution payable on December 31, 2025
• Series A rated A2 by Moody's

Negative

• Distributions may include return of capital, affecting tax basis
• Final tax composition will be determined in January 2026 Form 1099-DIV
• Closed-end fund shares may trade at a discount or premium to NAV

News Market Reaction – ACP

+0.19%

+0.19% Session close to close

In the Dec 10 session, ACP gained 0.19%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement reaffirmed a quarterly cash distribution of $0.328125 per share on ACP’s 5.25% Ser...

Analysis

This announcement reaffirmed a quarterly cash distribution of $0.328125 per share on ACP’s 5.25% Series A Perpetual Preferred Shares, maintaining the established $1.3125 annual rate. Similar dividend releases throughout 2025 showed minimal immediate price impact, suggesting the market has viewed them as routine. Investors may focus on how these steady preferred payouts sit alongside the previously announced $75 million ATM equity program and the fund’s position below its 5.77 200-day moving average.

Key Figures

Quarterly dividend: $0.328125 per share Annual dividend rate: $1.3125 per share Coupon rate: 5.250% +5 more

8 metrics

Quarterly dividend $0.328125 per share 5.25% Series A Perpetual Preferred; payable Dec 31, 2025

Annual dividend rate $1.3125 per share 5.25% Series A Perpetual Preferred Shares

Coupon rate 5.250% Series A Perpetual Preferred Shares

Issue price $25.00 per share Series A Preferred issued May 10, 2021

Current common price $5.42 ACP common shares prior to dividend news

52-week high $6.47 ACP common 52-week range high

52-week low $4.92 ACP common 52-week range low

ATM program size $75 million At-the-market equity offering program announced Aug 1, 2025

Historical Context

2 past events · Latest: Sep 10 (Neutral)

Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
Sep 10	Preferred dividend	Neutral	+0.0%	Declared quarterly $0.328125 dividend on Series A preferred shares.
Aug 01	ATM equity program	Neutral	+0.0%	Announced up to $75M at-the-market equity offering program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Dividend and ATM offering announcements over 2025 have produced minimal immediate price reaction for ACP.

Recent Company History

Over 2025, abrdn Income Credit Strategies Fund (ACP) combined capital-raising and income-focused actions. An August 1, 2025 ATM equity program of up to $75 million expanded potential issuance capacity, while multiple announcements of the Series A preferred quarterly dividend at $0.328125 per share maintained a stable payout pattern. Price reactions to these items were near zero over the following 24 hours, suggesting the market had largely anticipated such routine dividend updates and the ATM framework.

Key Terms

perpetual preferred shares, return of capital, net asset value (NAV), Form 1099-DIV, +1 more

5 terms

perpetual preferred shares financial

"the Fund's 5.250% Series A Perpetual Preferred Shares (NYSE: ACP PRA)"

Perpetual preferred shares are a type of equity that pays regular, often fixed, dividends indefinitely and does not have a maturity date like a bond. They rank above common stock for dividends and in liquidation, so they can act like a steady-income hybrid between stock and bond; investors care because these shares offer ongoing income and higher priority in payouts but typically have limited upside and interest-rate and issuer-credit risk.

return of capital financial

"such as net realized short-term capital gains, net realized long-term capital gains and return of capital."

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

net asset value (NAV) financial

"Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV)"

Net asset value (NAV) is the per-share value of an investment fund calculated by totaling the fund’s assets, subtracting its liabilities, and dividing the remainder by the number of outstanding shares. Think of it like a price tag on each share of a collective piggy bank: investors use NAV to see what each share is worth, to compare funds, and, for many funds, it’s the price at which shares are bought or redeemed.

Form 1099-DIV regulatory

"In January 2026, a Form 1099-DIV will be sent to shareholders"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

closed-end funds financial

"Closed-end funds are traded on the secondary market through one of the stock exchanges."

A closed-end fund is an investment pool that raises a fixed amount of money by issuing a set number of shares, which then trade on an exchange like stocks. Unlike bank-style mutual funds that buy or sell shares on demand, its market price can sit above or below the fund’s per-share value of holdings (like a used-car market price versus the sticker price), so investors should watch both the traded price and the underlying asset value for potential bargains or risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

PHILADELPHIA, Dec. 9, 2025 /PRNewswire/ -- The Board of Trustees of abrdn Income Credit Strategies Fund (the "Fund"), has declared a cash distribution of $0.328125 per share of the Fund's 5.250% Series A Perpetual Preferred Shares (NYSE: ACP PRA) ("Series A Preferred Shares"). The distribution is payable on December 31, 2025, to holders of Series A Preferred Shares of record on December 19, 2025 (ex-dividend date December 19, 2025).

The Series A Preferred Shares trade on the NYSE under the symbol "ACP PRA", are rated "A2" by Moody's Investors Service and have an annual dividend rate of $1.3125 per share.  The Series A Preferred Shares were issued on May 10, 2021, at $25.00 per share and pay distributions quarterly.

Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. 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.  In January 2026, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2025 calendar year.   

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution. 

Aberdeen Investments Global is the trade name of Aberdeen's investments business, herein referred to as "Aberdeen Investments" or "Aberdeen". In the United States, Aberdeen Investments refers to the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.

Closed-end funds are traded on the secondary market through one of the stock exchanges. A Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that a Fund will achieve its investment objective. Past performance does not guarantee future results.

View original content to download multimedia:https://www.prnewswire.com/news-releases/abrdn-income-credit-strategies-fund-5-25-series-a-perpetual-preferred-shares-declare-quarterly-dividend-302637107.html

SOURCE abrdn Income Credit Strategies Fund 5.25% Series A Perpetual Preferred Shares

FAQ

What dividend did abrdn Income Credit Strategies Fund (ACP PRA) declare on December 9, 2025?

The Fund declared a quarterly cash distribution of $0.328125 per Series A share, payable December 31, 2025.

What are the record and ex-dividend dates for ACP PRA's December 2025 distribution?

Record date is December 19, 2025 and the ex-dividend date is December 19, 2025.

How much is the annual dividend rate for ACP PRA Series A preferred shares?

The Series A preferred shares have an annual dividend rate of $1.3125 per share.

Will ACP PRA shareholders get a tax form showing the distribution breakdown for 2025?

Yes. The Fund will send a Form 1099-DIV in January 2026 that states the amount and composition of 2025 distributions.

When were ACP PRA Series A preferred shares issued and at what price?

The Series A preferred shares were issued on May 10, 2021 at $25.00 per share.

Does the ACP PRA distribution guarantee investment performance?

No. The announcement warns that distribution size does not indicate investment performance, and share value and NAV can fluctuate.