SRH Total Return Fund, Inc. Increases Its Quarterly Distribution by 20% This Is the Fourth Consecutive Annual Increase

Rhea-AI Summary

SRH Total Return Fund (NYSE:STEW) announces a 20% increase in its quarterly distribution to $0.165 per share starting January 2025, marking its fourth consecutive annual increase. The distribution has grown by 12.8% annually over four years. The upcoming distribution represents approximately 4.07% of the Fund's market price and 3.13% of its NAV. As of November 8, 2024, the Fund's NAV was $21.08 per share with a closing market price of $16.22, reflecting a 23.06% discount to NAV. The January 2025 distribution will be payable to stockholders of record on January 24, 2025.

Positive

• 20% increase in quarterly distribution to $0.165 per share
• Fourth consecutive annual increase with 12.8% average growth over four years
• Distribution represents 4.07% yield at current market price
• Distribution is accretive to market-price-based return due to current discount to NAV

Negative

• Significant 23.06% discount to NAV indicates market undervaluation
• Distribution may not consist solely of net investment income

Insights

Financial Analyst

The 20% increase in quarterly distribution to $0.165 per share represents significant value for shareholders, marking the fourth consecutive annual increase with a compound growth rate of 12.8% over this period. The new annualized yield of 4.07% based on market price is attractive in the current market environment.

The fund's substantial 23.06% discount to NAV ($16.22 market price vs $21.08 NAV) presents an interesting opportunity. Since distributions are paid at NAV, shareholders effectively receive more value than the market price suggests. This structure, combined with the increased distribution, could help narrow the discount gap over time.

DENVER, CO / ACCESSWIRE / November 13, 2024 / SRH Total Return Fund, Inc. (NYSE:STEW) (the "Fund") is pleased to announce a 20% increase in the Fund's quarterly distribution to $0.165 per share beginning in January 2025, payable on the date noted below. This is the fourth consecutive annual increase of the Fund's managed distribution. The distribution has been increased by 12.8% annually over the last four years. This distribution is being paid as part of the Fund's managed distribution program, under which the Fund intends to make per share distributions of $0.165 per quarter, or approximately $0.66 per year, to common stockholders. As of market close on November 8, 2024, the distribution (on an annualized basis) amounts to approximately 4.07% of the Fund's market price and 3.13% of its net asset value ("NAV"). The January 2025 quarterly distribution will be payable in cash to stockholders of record per the following critical dates:

Pay Date	Record Date	Ex-Dividend Date	Amount Per Share
January 31, 2025	January 24, 2025	January 24, 2025	$0.165

Due to the current discount of the Fund's market price to its per share NAV and the fact that distributions are made in cash (i.e., at NAV), if Fund shares continue to trade at a discount at the time of this distribution, then it will be accretive to the Fund's market-price-based return.

As previously announced, the Board of Directors instituted a managed distribution program in accordance with its Section 19(b) exemptive order in November 2015. In adopting the program, the Fund seeks to provide a regular quarterly distribution to its common stockholders which is not dependent on the amount of income earned or capital gains realized by the Fund.

Investors should not make any conclusions about the Fund's investment performance from the amount of the Fund's distributions or the Fund's distribution policy. With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders 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 its full fiscal year and may be subject to changes based on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes.

The Fund

SRH Total Return Fund, Inc. is a non-diversified closed-end investment company traded on the New York Stock Exchange under the trading symbol "STEW". As of November 8, 2024, the Fund's NAV was $21.08 per share and the closing market price was $16.22 (a 23.06% discount to NAV). For more information on the Fund, please visit the Fund's webpage at www.srhtotalreturnfund.com.

The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value.

Paralel Advisors LLC

Paralel Advisors LLC serves as the investment advisor to the SRH Total Return Fund. Together with our parent company, Paralel Technologies LLC, we develop technology-based solutions to better serve investors.

Rocky Mountain Advisers, LLC

RMA is an investment adviser registered with the SEC based out of Kansas. More information about RMA is available at www.srhtotalreturnfund.com as well as www.investrma.com.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

Contact info:

Website: https://srhtotalreturnfund.com/

Email: stewclientinquiries@paralel.com

SOURCE: SRH Total Return Fund, Inc.

View the original press release on accesswire.com

FAQ

What is the new quarterly distribution amount for SRH Total Return Fund (STEW)?

The new quarterly distribution amount for STEW is $0.165 per share, representing a 20% increase, starting January 2025.

When is the January 2025 distribution payment date for STEW?

The January 2025 distribution payment date for STEW is January 31, 2025, with a record date of January 24, 2025.

What is STEW's current discount to NAV as of November 8, 2024?

As of November 8, 2024, STEW trades at a 23.06% discount to NAV, with a market price of $16.22 compared to NAV of $21.08.

What is the annualized distribution yield for STEW based on current market price?

The annualized distribution yield for STEW is approximately 4.07% based on the market price as of November 8, 2024.