XAI Octagon Floating Rate & Alternative Income Trust Monthly Distribution
The XAI Octagon Floating Rate & Alternative Income Trust has announced its regular monthly dividend, providing shareholders with a distribution of $0.070 per share. This amount remains unchanged from the previous month, illustrating the Trust's commitment to stable income for its investors.
Important Distribution Dates
Here are the key dates related to this distribution:
Ex-Dividend Date
Here, investors should note that the Ex-Dividend date is set for November 17. This signifies the crucial date by which an investor must own shares to receive the upcoming distribution.
Record Date
The Record Date is also established as November 17. Shareholders recorded by this date will be eligible for the payment.
Payment Date
Funds will be disbursed on December 1, ensuring that investors receive their expected dividends in a timely manner.
Understanding the Distribution Source
Common share distributions typically stem from various sources, including net investment income, capital gains, or potentially a return of capital. It is important for shareholders to recognize that the nature and source of these distributions may vary significantly, and specifics will be reported to investors through Form 1099 by the end of the calendar year.
Investment Objectives
The overarching goal of the Trust is to secure a favorable total return with a strong emphasis on income generation throughout diverse phases of the credit market. By investing predominantly in floating rate credit instruments and structured credit investments, the Trust aims to maintain stability in its monthly distributions.
About XA Investments
XA Investments LLC, based in Chicago, acts as the investment adviser to the XAI Trust. Established in 2016, XA Investments has become renowned for its management of listed closed-end funds, including the XAI Octagon Floating Rate & Alternative Income Trust, and is dedicated to offering diversified investment strategies to its clientele.
Investment Strategies
The Trust focuses on creating a balanced portfolio primarily within the private credit markets. Under regular market conditions, the Trust prioritizes investing at least 80% of its managed assets in floating rate credit instruments. This strategic approach is designed to optimize return on investment for its shareholders.
Future of Distributions
The Board of Trustees will determine the future distributions based on various factors such as financial performance, compliance with regulations, and overall investment income. While stability in distributions is the goal, there can be no guarantees about the amount or timing of future payments.
Conclusion
As an investor in the XAI Octagon Floating Rate & Alternative Income Trust (NYSE:XFLT), understanding the nuances of your investment, including consistent monthly distributions and the reliability of the income sources, is essential. This Trust represents a unique opportunity for those seeking consistent income from alternative investments.
Frequently Asked Questions
What is the dividend amount declared by XAI Octagon Trust?
The declared monthly distribution is $0.070 per share for common shareholders.
When will shareholders receive their dividends?
The payment date is scheduled for December 1.
What is the importance of the ex-dividend date?
To qualify for the upcoming dividend, shareholders must own shares prior to the Ex-Dividend date of November 17.
What factors impact future distributions?
The distributions depend on various factors, including the Trust's compliance with financial covenants and its net investment income.
Who manages the XAI Octagon Trust?
XA Investments LLC serves as the investment adviser for the Trust, focusing on maximizing returns through strategic investments.
