abrdn Global Dynamic Dividend Fund (AGD) and abrdn Total Dynamic Dividend Fund (AOD) Announce 70% Increase in Distribution Rate and Adoption of a 12% Managed Distribution Policy

Rhea-AI Summary

abrdn Global Dynamic Dividend Fund (NYSE:AGD) and abrdn Total Dynamic Dividend Fund (NYSE:AOD) have announced a 70% increase in distribution rate and adoption of a 12% Managed Distribution Policy. The new policy, effective August 30, 2024, will pay monthly 12% of the average daily NAV for the previous month. AGD shareholders will see an approximate 70% increase, with the distribution rising from $0.065 to $0.11 per share. AOD shareholders will experience an approximate 74% increase, with the distribution increasing from $0.0575 to $0.10 per share. This policy aims to provide steady cash distributions and potentially reduce the Funds' discount to NAV. The changes are based on July 31, 2024 NAVs, with AGD's annualized NAV distribution rate increasing from 6.8% to 12%, and AOD's from 7.0% to 12%.

Positive

• 70% increase in distribution rate for both AGD and AOD funds
• Implementation of a 12% Managed Distribution Policy
• AGD's monthly distribution increased from $0.065 to $0.11 per share
• AOD's monthly distribution increased from $0.0575 to $0.10 per share
• Potential reduction in the Funds' discount to NAV
• AGD's annualized NAV distribution rate increased from 6.8% to 12%
• AOD's annualized NAV distribution rate increased from 7.0% to 12%

Negative

• NAV fluctuations may impact the payment of monthly distributions
• No assurance that the Funds will achieve the expected results

PHILADELPHIA, PA / ACCESSWIRE / August 8, 2024 / abrdn Global Dynamic Dividend Fund (NYSE:AGD) and abrdn Total Dynamic Dividend Fund (NYSE:AOD) (collectively, the "Funds") each, a closed-end management investment company, announced today its Board of Trustees (each a "Board" and collectively, the "Boards") have each approved the implementation of a managed distribution policy which will pay monthly, 12% of the average daily NAV for the previous month as of the month-end prior to declaration ("Managed Distribution Policy"). The new Managed Distribution Policy will commence with the distributions payable on August 30, 2024, to all shareholders of record as of August 23, 2024 (ex-dividend date August 23, 2024).

Based on each Fund's respective distribution rate announced below, shareholders of AGD will see an approximate 70% increase and AOD shareholders an approximate 74% increase in the monthly distribution rate for August.

Ticker	Exchange	Previous Stable Distribution Policy	New Managed Distribution Policy	Declared Distribution Amount
AGD	NYSE	Stable monthly distribution of $0.065	12% percent of the average daily NAV for the previous month as of the month-end prior to declaration	$0.11
AOD	NYSE	Stable monthly distribution of $0.0575	12% percent of the average daily NAV for the previous month as of the month-end prior to declaration	$0.10

The Funds each distribute monthly all or a portion of its net investment income, including current gains, to common shareholders. The distributions for each Fund will be made from net investment income, net realized capital gains and, to any extent necessary, return of capital.

abrdn Global Dynamic Dividend Fund (AGD) - 73% Increase

AGD pays a stable distribution that is paid monthly at an annual rate, set once a year. On August 7, 2024, the Board of AGD, approved the new Managed Distribution Policy, commencing with the August 2024 distribution.

Based on the NAV as of July 31, 2024, of $11.39 this would equate to an increased distribution on NAV from $0.065cps to $0.11cps or an increased annualized NAV distribution rate from 6.8% to 12%, an increase of approximately 76%. Based on the share price as of July 31, 2024, of $10.01 this would equate to an increased annualized share price distribution rate from 7.8% to 13.7%. The NAV however will fluctuate with changes in market conditions which will impact the payment of the monthly distributions.

abrdn Total Dynamic Dividend Fund (AOD) - 70% Increase

AOD pays a stable distribution that is paid monthly at an annual rate, set once a year. On August 7, 2024, the Board of AOD, approved the new Managed Distribution Policy, commencing with the August 2024 distribution.

Based on the NAV as of July 31, 2024, of $9.86 this would equate to an increased distribution on NAV from $0.0575cps to $0.10cps or an increased annualized NAV distribution rate from 7.0% to 12%, an increase of approximately 71%. Based on the share price as of July 31, 2024, of $8.58 this would equate to an increased annualized share price distribution rate from 8.0% to 13.8%. The NAV however will fluctuate with changes in market conditions which will impact the payment of the monthly distributions.

Each Fund's policy is expected to provide a steady and sustainable cash distribution to Fund shareholders that may help reduce the Fund's current discount to NAV. There is no assurance that a Fund will achieve these results. Shareholders should not draw any conclusions about each Fund's investment performance from the amount of the distributions or the terms of the Fund's policy.

At the end of each calendar year, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of each fund's distributions and provide information with respect to their appropriate tax treatment for the prior calendar year. You should not draw any conclusions about any of these Funds' investment performance from the amount of the distributions.

Circular 230 disclosure: To ensure compliance with requirements imposed by the U.S. Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

In the United States, abrdn is the marketing name for 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.

https://www.abrdn.com/en-us/cefinvestorcenter

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For More Information Contact:

abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com

SOURCE: abrdn U.S. Closed-End Funds

View the original press release on accesswire.com

FAQ

When will AGD's new Managed Distribution Policy take effect?

AGD's new Managed Distribution Policy will take effect on August 30, 2024, for shareholders of record as of August 23, 2024.

What is the new monthly distribution amount for AGD under the 12% Managed Distribution Policy?

Under the new 12% Managed Distribution Policy, AGD's monthly distribution amount will increase to $0.11 per share.

How much will AOD's distribution rate increase under the new policy?

AOD shareholders will see an approximate 74% increase in the monthly distribution rate, with the distribution rising from $0.0575 to $0.10 per share.

What is the purpose of implementing the new Managed Distribution Policy for AGD and AOD?

The new policy aims to provide steady cash distributions to Fund shareholders and potentially reduce the Funds' discount to NAV.

How will the new distribution policy affect AGD's annualized NAV distribution rate?

AGD's annualized NAV distribution rate will increase from 6.8% to 12% based on the July 31, 2024 NAV.