RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. and RiverNorth Capital and Income Fund, Inc. Announce Preferred Dividends
RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc., and RiverNorth Capital and Income Fund, Inc. have declared preferred dividends for the first quarter of 2024. The dividends are payable on February 15, 2024. RiverNorth Capital Management, LLC, with $4.9 billion in assets under management, specializes in opportunistic investment strategies in niche markets. The distributions were calculated based on the preferred shares Liquidation Preference and most current quarterly distribution rate per share. Investors should consider the Fund's investment objective, risks, charges, and expenses carefully before investing.
The declaration of preferred dividends by RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. and RiverNorth Capital and Income Fund, Inc. represents a noteworthy event for current and potential investors. Preferred dividends are payments made to holders of preferred shares, which typically have a fixed dividend rate and take precedence over common stock dividends. In this case, the dividends range from 4.375% to 6.00% based on the liquidation preference of $25.00 per share. These figures are significant as they provide insights into the funds' cash flow and their ability to generate income for investors.
From a financial perspective, the distribution rates can be compared to industry benchmarks to assess the attractiveness of these preferred shares. The declared rates seem competitive, potentially indicating a strong performance by the funds. However, investors should be aware that distributions may be paid from various sources, including capital gains and return of capital, which could affect the sustainability of these dividends over the long term.
It is crucial for investors to understand the tax implications of dividend distributions. The announcement mentions that distributions may be comprised of ordinary income, net realized short-term capital gains, net realized long-term capital gains and return of capital. The tax treatment of these components varies, with ordinary income typically taxed at higher rates than qualified dividends or long-term capital gains. The return of capital is not taxed immediately but reduces an investor's cost basis, potentially increasing capital gains when the shares are sold.
Investors must consult with tax professionals to ensure they understand the potential tax liabilities associated with these dividends. Furthermore, the funds provide a Section 19(a) notice when distributions include anything other than net investment income, which is essential for investors to estimate their tax obligations accurately.
The funds' assets under management (AUM) of $4.9 billion as of November 30, 2023, indicate the scale of RiverNorth's operations and its significance in the market. The AUM includes the effects of leverage and investments in affiliated funds, which suggests that the firm employs strategies that may increase the funds' exposure to market volatility. Leverage can amplify returns but also increases risk, which should be a consideration for risk-averse investors.
Moreover, the funds' focus on opportunistic investment strategies in niche markets is an attempt to exploit market inefficiencies. While this can lead to higher returns, it also requires specialized knowledge and carries a higher risk profile. Investors should consider whether such strategies align with their investment objectives and risk tolerance.
01/19/2024 - 05:00 PM
WEST PALM BEACH, Fla. --(BUSINESS WIRE)--
RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. and RiverNorth Capital and Income Fund, Inc. are each pleased to announce the declaration of preferred dividends for the first quarter of 2024, as detailed below.
Ex Date
Record Date
Payable Date
February 1, 2024
February 2, 2024
February 15, 2024
Fund Name
Preferred Stock Series
NYSE
Distribution
RiverNorth Opportunities Fund, Inc.
6.000% Series A Perpetual Preferred Stock
RIVPRA
$0.37 500
RiverNorth/DoubleLine Strategic
Opportunity Fund, Inc.
4.375% Series A Cumulative Preferred Stock
OPPPRA
$0.27 344
RiverNorth/DoubleLine Strategic
Opportunity Fund, Inc.
4.750% Series B Cumulative Preferred Stock
OPPPRB
$0.29 688
RiverNorth Capital and Income Fund, Inc.
5.875% Series A Term Preferred Stock
RMPL
$0.36 719
RiverNorth Capital Management, LLC is an investment management firm founded in 2000. With $4.9 billion 1 in assets under management as of November 30, 2023, RiverNorth specializes in opportunistic investment strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is an institutional investment manager to registered funds, private funds and separately managed accounts.
The distributions were calculated based on the preferred shares Liquidation Preference of $25.00 $0.37 5006.00% Series A Perpetual Preferred Stock, $0.27 3444.375% Series A Cumulative Preferred Stock, $0.29 6884.75% Series B Cumulative Preferred Stock, and $0.36 7195.875% Series A Term Preferred Stock, respectively. 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 each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.
This data is for information only and should not be construed as an official tax form, nor should it be considered tax or investment advice. RiverNorth is not a tax advisor and investors should consult a tax professional for guidance regarding their specific tax situation. Please consult your legal or tax advisor.
Investors should consider the Fund's investment objective, risks, charges, and expenses carefully before investing. The prospectus should be read carefully before investing. For more information, please read the prospectus, call your financial professional or call 844.569.4750.
Investing in the Fund involves certain risks, including loss of principal, that are described in the "Risks" section of each Prospectus.
Marketing services provided by ALPS Distributors Inc. ALPS and RiverNorth are not affiliated.
1 Firm AUM reflects Managed Assets which includes the effects of leverage and investments in affiliated funds.
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC. DoubleLine® is a registered trademark of DoubleLine Capital LP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240119445664/en/
RiverNorth CEF Investor Relations
CEF@rivernorth.com
Source: RiverNorth Capital Management, LLC
What dividends have been declared for the first quarter of 2024?
RiverNorth Opportunities Fund, Inc., RiverNorth/DoubleLine Strategic Opportunity Fund, Inc., and RiverNorth Capital and Income Fund, Inc. have declared preferred dividends for the first quarter of 2024.
When are the dividends payable?
The dividends are payable on February 15, 2024.
What is the asset under management of RiverNorth Capital Management, LLC?
RiverNorth Capital Management, LLC has $4.9 billion in assets under management.
What should investors consider before investing?
Investors should consider the Fund's investment objective, risks, charges, and expenses carefully before investing.
