Kayne Anderson Energy Infrastructure Fund Announces Tax Characterization of 2024 Distributions
Rhea-AI Summary
Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) has released the tax characterization of its 2024 distributions. The company made six distributions throughout 2024, with five distributions (January through October) being characterized as 100% qualified dividends. The final December distribution was split between 25% qualified dividends and 75% return of capital (ROC).
The distributions were made as follows: $0.22 per share for January, April, and June; $0.24 per share for October; $0.08 for November; and $0.08 for December. KYN is a non-diversified, closed-end management investment company that aims to provide high after-tax total returns with an emphasis on cash distributions to stockholders, investing at least 80% of its total assets in Energy Infrastructure Companies.
Positive
- Consistent quarterly dividend payments throughout 2024
- Majority of distributions (5 out of 6) qualified as 100% qualified dividends, which may have favorable tax treatment for investors
Negative
- Final distribution of 2024 included 75% return of capital, which could indicate earnings didn't fully cover the distribution
- Reduction in distribution amount from $0.24 to $0.08 in November 2024
Insights
The tax characterization announcement by Kayne Anderson Energy Infrastructure Fund reveals a total distribution of
The fund's distribution strategy demonstrates sophisticated tax planning, with ROC distributions typically not immediately taxable but instead reducing the cost basis of shares. This can effectively defer tax liability until shares are sold, potentially resulting in more favorable long-term capital gains treatment. The consistent quarterly payments of
For a simpler explanation: Think of ROC like getting back part of your initial investment rather than earning new money. It's similar to taking money out of your savings account - you don't pay taxes because it's your money coming back to you. This makes the fund's payments more tax-friendly for many investors.
HOUSTON, Jan. 17, 2025 (GLOBE NEWSWIRE) -- KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND ANNOUNCES TAX CHARACTERIZATION OF 2024 DISTRIBUTIONS
Houston, TX – January 17, 2025 – Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) announced today the tax characterization of its 2024 distributions.
| KYN Common Stock Distribution | Tax Character | |||||
Record Date | Payable Date | Amount | Qualified Dividends | Non-Dividend Distributions (ROC) | ||
| 1/3/2024 | 1/10/2024 | 100 | % | - | ||
| 4/5/2024 | 4/12/2024 | 100 | % | - | ||
| 6/28/2024 | 7/8/2024 | 100 | % | - | ||
| 9/30/2024 | 10/7/2024 | 100 | % | - | ||
| 11/15/2024 | 11/29/2024 | 100 | % | - | ||
| 12/16/2024 | 12/31/2024 | 25 | % | 75 | % | |
Additional information regarding the tax characterization of the Company’s 2024 distributions is available at www.kaynefunds.com.
This information is provided for general informational purposes only. It does not constitute, and should not be construed as, tax, legal, investment, or other professional advice and cannot be used or relied upon for the purpose of avoiding tax penalties. Investors should consult their tax adviser or legal counsel for advice and information concerning their particular situation.
Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.
Contact investor relations at 877-657-3863 or cef@kayneanderson.com.
FAQ
What is the tax characterization of KYN's 2024 distributions?
How much were KYN's quarterly distributions in 2024?
What percentage of KYN's assets are invested in Energy Infrastructure Companies?
Why did KYN's distribution amount change in November 2024?
