- Approved by the Corporation’s Board of Directors, the commitment means that Petroleum & Resources shareholders can count on receiving annual distributions that will result in an annual distribution rate of at least 6% regardless of whether the market is up or down.
- You will receive from the Fund each year an amount equal to at least 6% of the average trailing twelve-month market price of our stock, which will be calculated using the NYSE month-end market price for the twelve months ended October 31.
- Distributions will be made in four installments using the same payout schedule that we have used for many years – three interim quarterly distributions of earned investment income (March 1, June1 and September 1) and a year-end distribution of net investment income and realized capital gains. If necessary to meet the 6% minimum commitment, a return of capital will also be made. Shareholders will continue to have the option to receive the year-end distribution in either cash or additional shares of stock.
- Portions of the distributions may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum applicable federal income tax rate, which is currently 15% in taxable accounts for individuals.
- Our annual distribution rate will be greater than 6% in any year in which the combined amount of net investment income and realized capital gains generated by the Fund produces a distribution rate that is greater than 6%.
- In any year in which the combined amount of net investment income and realized capital gains generated by the Fund produces a distribution rate that is less than 6%, distributions may include a return of capital.
- Our commitment provides a more predictable level of annual distribution rate and may be particularly attractive to investors seeking retirement income.
For more details on the annual minimum 6% distribution rate, please click here to read the press release that we issued on September 13, 2012.