Adams Natural Resources Fund Sets Share Issue Price
Adams Natural Resources Fund, Inc. (NYSE: PEO) has announced an issue price of $22.75 per share for its upcoming distribution to shareholders in the third quarter. This price is based on the average of the highest and lowest selling prices of the Fund's stock on the New York Stock Exchange on the designated valuation date.
Third Quarter Distribution Details
The shares of common stock are linked to a distribution of $0.54, representing the first payout under the Fund's newly implemented managed distribution policy. This policy is designed to guarantee a minimum annual distribution of 8% of the average net asset value (NAV), which will be distributed evenly at a rate of 2% each quarter. The distribution for the fourth quarter will either meet the 2% requirement or comply with the minimum distribution regulations as outlined in the Internal Revenue Code for regulated investment companies. The average NAV will be calculated based on the previous four quarter-end NAVs prior to each declaration.
Estimated Sources for Distribution Payments
For the upcoming distribution at the end of August, along with others throughout the year, the following estimated sources have been identified:
Breakdown of the Distribution
The estimated sources contributing to the $0.54 distribution on August 30, 2024, are as follows:
- Net Investment Income: $0.32 (59% of the total distribution)
- Net Realized Short-Term Gains: $0.00 (0% of the total distribution)
- Net Realized Long-Term Gains: $0.22 (41% of the total distribution)
- Return of Capital: $0.00 (0% of the total distribution)
Performance Year-to-Date
As of year-to-date 2024, the total distribution stands at $0.74, which includes:
- Net Investment Income: $0.51 (69% of the total distribution)
- Net Realized Short-Term Gains: $0.00 (0% of the total distribution)
- Net Realized Long-Term Gains: $0.23 (31% of the total distribution)
- Return of Capital: $0.00 (0% of the total distribution)
Insights on Fund Performance
The average annual total return (on NAV) for the five years ending in July 2024 is reported at 14.4%. The current annualized distribution rate is at 7.8%. Additionally, the cumulative total return for the fiscal year through July 31, 2024, is 12.9%, while the cumulative fiscal year distribution rate is 2.7%.
Commitment to Shareholders
Adams Funds takes pride in its long-standing dedication to delivering value to its shareholders. With over 73 consecutive years of capital gains distributions and 90 uninterrupted years of dividend payments, the Fund has shown resilience across various market conditions.
About Adams Funds
Founded in 1929, Adams Funds has helped countless investors reach their financial goals. It includes two closed-end funds: the Adams Diversified Equity Fund, Inc. (NYSE: ADX) and the Adams Natural Resources Fund, Inc. (NYSE: PEO). The management team employs a disciplined strategy to ensure consistent annual distributions of at least 8% of the NAV, providing reliable income for long-term investment success.
Contact Information
For further inquiries, individuals can contact the team directly at 800.638.2479 or visit the contact section on the Adams Funds website.
Frequently Asked Questions
What is the issue price set by Adams Natural Resources Fund for shares?
The issue price is set at $22.75 per share for the third quarter distribution.
When will the distribution be payable?
The distribution will be payable on August 30, 2024.
What is the amount of the third-quarter distribution?
The third-quarter distribution amount is $0.54 per share.
How much net investment income is derived from the distribution?
The net investment income is $0.32, which accounts for 59% of the total distribution.
How long has Adams Funds been paying dividends?
Adams Funds has consistently paid dividends for more than 90 years, alongside capital gains for over 73 consecutive years.
