Royce Small-Cap Trust, Inc. Declares Fourth Quarter Dividend
Royce Small-Cap Trust, Inc. (NYSE-RVT) has officially declared a fourth quarter distribution of $0.44 per share on its common stock. Shareholders will have the option to receive this distribution in additional shares or cash, as per their election. The payment date for this dividend is set for December 23, 2024, to stockholders on record as of December 12, 2024.
Understanding the Distribution Policy
The Royce Small-Cap Trust has implemented a distribution policy that aims to provide quarterly distributions to its stockholders. The fund generally pays distributions at an annual rate of 7% based on the rolling average of the net asset values (NAVs) of the prior four calendar quarters. For this quarter, the distribution will be the greater of 1.75% of the rolling average or the minimum required by IRS regulations.
Distribution Source Insights
Shareholders should note that a part of their distribution may be categorized as a return of capital. This return of capital occurs when some or all of the money originally invested is returned to the shareholder, which should not necessarily be interpreted as a reflection of the fund's overall performance. Instead, it indicates that the distributions have exceeded profits and realized capital gains.
Breakdown of Estimated Allocations
The estimated sources for the upcoming distribution scheduled for December 23, 2024, and these for the year-to-date 2024 are as follows:
Estimated Allocations as of November 30, 2024:
- Distribution per Share: $0.44
- Net Investment Income: $0.0497 (11%)
- Net Realized Short-Term Gains: $0.0400 (9%)
- Net Realized Long-Term Gains: $0.3484 (79%)
- Return of Capital: $0.0019 (1%)
Performance Overview
The fund has demonstrated a robust performance over the past fiscal year. As of November 30, 2024, the average annual total return in relation to NAV for the past five years stands at 12.01%. The annualized current distribution rate is 9.36% as a percentage of NAV, indicating a relatively healthy return for shareholders.
Cumulative Returns and Distribution Rates
The cumulative total return, reflecting the performance from December 31, 2023, to November 30, 2024, reached an impressive 21.20%. Meanwhile, the cumulative fiscal year distribution rate, which accounts for the distributions made this fiscal year as a percentage of NAV, is positioned at 6.75%.
About Royce Small-Cap Trust, Inc.
Royce Small-Cap Trust, Inc. is a closed-end diversified management investment company, with its shares traded on the New York Stock Exchange. The fund's primary focus is on long-term capital growth. As of May 1, 2024, it invests at least 80% of its net assets in equity securities of small-cap companies. Such companies have market capitalizations not exceeding that of the largest firm in the Russell 2000 Index at its latest reconstitution.
For further information on Royce Small-Cap Trust, Inc., you can learn more about its investment strategy, performance updates, and shareholder relations.
Frequently Asked Questions
What is the dividend declared by Royce Small-Cap Trust for Q4?
The fund declared a fourth quarter dividend of $0.44 per share.
When will the Q4 dividend be paid?
The distribution will be paid on December 23, 2024, to shareholders on record as of December 12, 2024.
What options do shareholders have regarding the dividend?
Shareholders can choose to receive the dividend in cash or opt for additional shares of common stock.
How does the fund determine its quarterly distribution rate?
The distribution rate is based on 7% of the rolling average of the prior four calendar quarters’ NAVs or the minimum required by IRS regulations.
What portion of the distribution may be a return of capital?
Depending on income and realized gains, a portion of the distribution could be classified as a return of capital, indicating some invested money is being returned to shareholders.
