Royce Micro-Cap Trust, Inc. (NYSE-RMT) declares First Quarter Common Stock Distribution of $0.19 Per Share
Rhea-AI Summary
Royce Micro-Cap Trust (NYSE:RMT) has announced a quarterly distribution of $0.19 per share on its Common Stock, payable on March 26, 2025, to stockholders of record as of March 13, 2025.
The distribution can be received in either additional shares of Common Stock or cash, based on stockholder preference. The share price for reinvestment will be determined on March 20, 2025.
The Fund maintains a Distribution Policy of quarterly distributions at an annual rate of 7% of the rolling average of the prior four quarter-end NAVs. The fourth quarter distribution is set at the greater of 1.75% of the rolling average or the minimum IRS-required distribution. This policy, including the annual rate, may be modified at the Board's discretion.
Positive
- Consistent quarterly dividend payment maintained
- Flexible distribution options (cash or stock) for shareholders
- 7% annual distribution rate based on rolling NAV average
Negative
- None.
Insights
Royce Micro-Cap Trust's quarterly distribution of
The distribution mechanics are worth examining - shareholders can receive cash or reinvest automatically, with reinvestment pricing determined on March 20. This creates a compounding opportunity for long-term investors not requiring immediate income. The ex-dividend date of March 13 serves as an important marker for investors considering position adjustments.
The fund's policy of distributing at
For income-focused investors, this consistent distribution cadence offers planning advantages, though it's important to note that the actual sources of these distributions for tax purposes will depend on the fund's realized gains, income, and potentially return of capital depending on performance.
This distribution announcement highlights RMT's commitment to structured shareholder returns within the micro-cap universe, where many companies reinvest rather than distribute cash. The
The distribution policy's design using a rolling average of the prior four quarter-end NAVs creates a smoothing mechanism that helps maintain distribution stability despite the inherent volatility of micro-cap securities. This structure benefits shareholders by preventing dramatic distribution fluctuations when underlying assets experience periodic volatility.
The reinvestment option warrants attention from growth-oriented investors. By reinvesting distributions at prices determined shortly after the ex-dividend date, shareholders can potentially accumulate additional shares during market pullbacks, enhancing long-term compounding. The mechanics of this process, with pricing determined on March 20, creates a short but notable timing gap between record date and reinvestment pricing.
The board's retained discretion to modify both the distribution policy and the
The Fund has adopted a Distribution Policy of paying quarterly distributions on its Common Stock. Distributions are being made at the annual rate of
The Fund's estimated sources of the distribution to be paid on March 26, 2025 and for 2025 year-to-date are as follows
Estimated Allocations as of February 28, 2025
Fund | Distribution | Net Investment | Net Realized | Net Realized | Return of |
RMT |
Estimated Allocations for 2025 through February 28, 2025
Fund | Distribution | Net Investment | Net Realized | Net Realized | Return of |
RMT |
You should not draw any conclusions about the Fund's investment performance from the amount of the current distribution or from the terms of the Fund's Distribution Policy. The amounts and sources of distributions reported herein are only estimates and are not being provided for tax reporting purposes. 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. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Fund Performance and Distribution Rate Information:
Fund | Average Annual | Annualized | Cumulative Total | Cumulative Fiscal |
RMT | 12.77 % | 7.26 % | -4.64 % | 1.81 % |
1 Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended February 28, 2025. Annual NAV Total Return is the percentage change in the Fund's NAV over a year, assuming reinvestment of distributions paid.
2 The Annualized Current Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of February 28, 2025.
3 Cumulative Total Return is the percentage change in the Fund's NAV from December 31, 2024 to February 28, 2025, assuming reinvestment of distributions paid.
4 The Cumulative Fiscal Year Distribution Rate is the dollar value of distributions for the fiscal year period (January 1, 2025 to February 28, 2025), as a percentage of the Fund's NAV as of February 28, 2025.
About Royce Micro-Cap Trust, Inc.
Royce Micro-Cap Trust, Inc. (the "Fund") is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the New York Stock Exchange. The Fund's investment goal is long-term capital growth, which it seeks by investing primarily in equity securities of companies that, at the time of investment, have market capitalizations of
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SOURCE Royce Micro-Cap Trust, Inc.
FAQ
What is the quarterly dividend amount for Royce Micro-Cap Trust (RMT) in Q1 2025?
When is the ex-dividend date for RMT's Q1 2025 distribution?
What is RMT's current distribution policy?
How can shareholders receive their RMT Q1 2025 distribution?
