Adams Diversified Equity Fund Sets $21.29 Share Price
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Adams Diversified Equity Fund Announces Third Quarter Distribution Details
Adams Diversified Equity Fund, Inc. (NYSE: ADX) has recently determined the issue price for its third quarter distribution to shareholders at $21.29 per share. This pricing reflects the mean between the high and low sales prices of the Fund's stock on the New York Stock Exchange, showcasing the dynamic nature of its trading performance and valuation.
Distribution Information
The shares of common stock will be issued as part of the Fund's commitment to payout a distribution of $0.44 for the third quarter. This marks the introduction of the Fund's new managed distribution policy, which aims to provide a minimum annual distribution rate of 8% based on average net asset value (NAV). Under this policy, distributions are made evenly at 2% of average NAV per quarter, ensuring shareholders receive consistent returns. The fourth quarter distribution will be determined as either 2% of average NAV or the amount necessary to meet the minimum distribution requirements set forth by the tax regulations for regulated investment companies.
Estimated Sources for Distribution
The estimated sources for the forthcoming distribution, scheduled for payment to shareholders, comprises various components intended to clarify the Fund's financial practices. A detailed breakdown of the distribution for the year 2024 indicates the reliance on net investment income, realized short-term gains, and capital return. The payoff components are as follows:
- Distribution per share on August 30, 2024: $0.44
- Net investment income: $0.04 (9%)
- Net realized short-term gains: $0.00 (0%)
- Net realized long-term gains: $0.40 (91%)
- Return of capital: $0.00 (0%)
Fund Performance and Historical Data
An evaluation of the Fund's performance illustrates a solid trajectory. The average annual total return over a five-year period leading up to July 31 shows a robust 15.2%. Additionally, the annualized current distribution rate stands at 7.4% based on NAV as of the same date, solidifying the Fund's commitment to providing value to its investors, even through diverse market fluctuations.
Cumulative Returns
The cumulative total return from NAV for the fiscal year through July 31, 2024, is articulated at a favorable 15.9%. This reference point encapsulates the effectiveness of investment strategies employed by the Fund while also highlighting a cumulative fiscal year distribution rate of 2.3% of NAV, denoting an active engagement in returning earnings back to investors.
Consistency and Reliability of Distributions
Adams Funds have a commendable history, having paid capital gains for over 60 consecutive years, and dividends for more than 89 years. Such consistency instills confidence in the Fund’s operational integrity and consistent returns. The record reflects a disciplined investment approach that prioritizes shareholder value.
About Adams Funds
Since its establishment in 1929, Adams Funds has played a pivotal role in facilitating investors in achieving their financial goals. The organization includes two closed-end funds, namely Adams Diversified Equity Fund, Inc. (NYSE: ADX) and Adams Natural Resources Fund, Inc. (NYSE: PEO). Managed by an experienced team employing a disciplined approach, these funds have consistently provided dividends, offering reliable income for long-term investors.
Investors can purchase shares directly through Adams Funds' transfer agent or via brokers. This flexibility enhances accessibility and options for potential investors seeking to diversify their portfolios with established funds.
Contact Information
For more information about Adams Funds, interested parties are encouraged to contact:
Phone: 800.638.2479
Website: adamsfunds.com/about/contact
Frequently Asked Questions
What is the new distribution policy of Adams Diversified Equity Fund?
The new managed distribution policy aims for a minimum 8% annual distribution rate based on average net asset value, distributed evenly each quarter.
How does the distribution breakdown look for this quarter?
This quarter's distribution is $0.44 per share, with the majority sourced from net realized long-term gains.
What has been the historical performance of the Fund?
The Fund has achieved an average annual total return of 15.2% over the past five years, indicating strong management and investment strategies.
What sustainability is there in dividend payments?
The Fund has a strong track record with dividends paid for more than 89 consecutive years, demonstrating a commitment to returning value to shareholders.
How can investors purchase shares?
Investors can purchase shares through the Fund's transfer agent or through various brokerage services, enhancing access to investments.
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