XAI Madison Equity Premium Income Fund Declares Monthly Distributions of $0.06 per Share Payable on May 1, June 2, and July 1, 2025
Rhea-AI Summary
XAI Madison Equity Premium Income Fund (MCN) has announced monthly distributions of $0.06 per share for May, June, and July 2025, totaling $0.18. This maintains the same distribution level as the previous quarter.
The Fund has transitioned from quarterly to monthly distributions starting April 1, 2025, to help investors better manage cash flow. The distributions will be paid on May 1, June 2, and July 1, 2025, with respective ex-dividend and record dates set for April 15, May 15, and June 16, 2025.
The Fund aims to achieve high current income and capital gains through a portfolio of common stocks and covered call options. Distributions may come from net investment income, capital gains, or return of capital, with final tax characteristics to be reported on Form 1099.
Positive
- Maintained stable distribution level of $0.18
- Improved shareholder liquidity with transition to monthly distributions
Negative
- None.
Insights
XAI Madison Equity Premium Income Fund's announcement of monthly distributions represents a neutral operational adjustment rather than a meaningful financial change. The Fund is maintaining its total quarterly distribution of
The change to monthly distributions benefits income-dependent investors through improved cash flow management, but introduces no additional economic value since the total distribution amount remains unchanged. This type of administrative adjustment is common among income-focused closed-end funds seeking to enhance their appeal to yield-oriented investors.
Investors should note the Fund's substantial disclosure about potential return of capital in its distributions. This indicates that some portion of payments may represent a return of shareholders' principal rather than actual investment income or capital gains - a common characteristic of closed-end funds maintaining stable distributions. The Fund explicitly states that distributions "may be paid from net investment income, capital gains and/or a return of capital" and that distributions might exceed the fund's net investment income from a given period.
While consistency in distributions is generally positive for income investors, this announcement provides no insight into the Fund's underlying performance or distribution coverage ratios. The maintenance of the existing distribution rate suggests operational stability but offers little information about growth prospects or potential distribution increases in the future.
CHICAGO, April 01, 2025 (GLOBE NEWSWIRE) -- XAI Madison Equity Premium Income Fund (the “Fund”), has declared its regular monthly distribution of
As previously announced in its distribution declaration dated March 3, 2025, the Fund has changed its distribution frequency from quarterly to monthly, effective with the April 1, 2025 declaration. XA Investments believes this change will enable investors to better manage their cash flow needs.
The following dates apply to the declaration:
| Ex-Dividend Date | Record Date | Payable Date | Amount Per Share | |
| April 15, 2025 | April 15, 2025 | May 1, 2025 | ||
| May 15, 2025 | May 15, 2025 | June 2, 2025 | ||
| June 16, 2025 | June 16, 2025 | July 1, 2025 | ||
| Total Amount of Monthly Distributions | $0.18 | |||
| Change from Previous Quarter No Change | ||||
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Fund’s common shareholders on Form 1099 after the end of the 2025 calendar year. Shareholders should not assume that the source of a distribution from the Fund is net income or profit. For further information regarding the Fund’s distributions, please visit www.xainvestments.com.
The Fund’s net investment income and capital gain can vary significantly over time; however, the Fund seeks to maintain more stable common share quarterly distributions over time. The Fund’s final taxable income for the current fiscal year will not be known until the Fund’s tax returns are filed.
As a registered investment company, the Fund is subject to a
The common share distributions paid by the Fund for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Fund, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
Future common share distributions will be made if and when declared by the Fund’s Board of Trustees, based on a consideration of number of factors, including the Fund’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The Fund’s objective is to achieve a high level of current income and current capital gains, with long-term capital appreciation as a secondary objective. The Fund intends to pursue its objective by investing in a portfolio of common stocks and utilizing an option strategy, primarily by writing (selling) covered call options on a substantial portion of the common stocks in the portfolio in order to generate current income and gains from option writing premiums and, to a lesser extent, from dividends. Market action can impact dividend issuance as the Fund’s total assets affect the Fund’s future dividend prospects. The Fund provides additional information on its website at www.xainvestments.com.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. The listed closed-end funds, the XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) and XAI Madison Equity Premium Income Fund (NYSE: MCN) both trade on the New York Stock Exchange. The interval closed-end fund, Octagon XAI CLO Income Fund (OCTIX), is newly launched and has been made widely available to investors.
In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, and fund management.
XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Madison Investments
Madison Investments is an independent investment management firm based in Madison, WI. The firm was founded in 1974, has approximately
Madison and/or Madison Investments is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC, and Madison Investment Advisors, LLC. Madison Funds are distributed by MFD Distributor, LLC. Madison is registered as an investment adviser with the U.S. Securities and Exchange Commission. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority www.finra.org.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before investing. For more information on the Fund, please visit the Fund’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
| NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
FAQ
What are the upcoming distribution dates and amounts for MCN stock in Q2 2025?
How has MCN's distribution amount changed compared to the previous quarter?
Why did MCN switch from quarterly to monthly distributions in 2025?
What are the ex-dividend dates for MCN's Q2 2025 distributions?
How does MCN generate income for its distributions?
