Adams Diversified Equity Fund Sets $0.48 Distribution Comprised of 52% Return of Capital
Adams Diversified Equity Fund declared a $0.48 per-share distribution for May 29, payable in cash or reinvested stock at the lower of market price or NAV (minimum 95% of market). The distribution comprises 8% net investment income, 40% long-term gains and 52% return of capital, lifting YTD distributions to $0.95.
1. Distribution Declaration and Election Terms
On April 16, Adams Diversified Equity Fund declared a $0.48 per-share distribution payable May 29 to shareholders of record April 27. Stockholders may elect to receive cash or additional common shares by 4 p.m. ET on May 15, with the issue price set at the lower of the Fund’s closing market price or NAV, not less than 95% of market price.
2. Distribution Source Breakdown
The May 29 distribution is funded 8% by net investment income ($0.04), 40% by net realized long-term gains ($0.19) and 52% by return of capital ($0.25). Year-to-date distributions total $0.95 per share, composed of 11% net investment income, 63% long-term gains and 26% return of capital.
3. Performance Metrics and Rates
Through March 31, the Fund delivered a 12.6% average annual total return on NAV over five years and a cumulative NAV return of -4.8% for the fiscal year. The annualized current distribution rate stands at 8.3% of NAV, with a cumulative fiscal year distribution rate of 4.1%.