NEW YORK - Royce Micro-Cap Trust, Inc. (NYSE:RMT), a closed-end investment company, has announced a quarterly distribution of $0.18 per share on its Common Stock, payable on September 23, 2024. The distribution can be received in additional shares of Common Stock or in cash, at the discretion of the stockholder. Shareholders on record by the close of business on September 13, 2024, will be eligible for the distribution, with the ex-dividend date being the same.
The company's distribution policy involves quarterly payments to shareholders and is based on an annual rate of 7% of the rolling average of the prior four calendar quarter-end net asset values (NAVs), with the fourth quarter distribution being the higher of 1.75% of the rolling average or the minimum distribution required by IRS regulations. However, the policy and its annual rate are subject to change by the Fund’s Board of Directors.
According to the Fund's estimates, the current distribution includes a return of capital, which indicates that a portion of the money distributed is from the invested capital in the Fund and not just income or capital gains. This should not be mistaken for the Fund's 'yield' or 'income.'
The estimated allocation of the distribution as of August 31, 2024, shows that the $0.18 per share consists of 0% from net investment income, 22% from net realized short-term gains, 68% from net realized long-term gains, and 10% from a return of capital. For the year-to-date through August 31, 2024, the distribution per share totals $0.53 with similar percentages from each source.
The Fund emphasizes that the distribution amount should not be seen as an indicator of investment performance. Additionally, the provided estimates are not for tax reporting purposes; the actual amounts and sources for tax reporting will depend on the Fund's investment experience for the remainder of the fiscal year and are subject to tax regulations. Shareholders will receive a Form 1099-DIV for the calendar year for federal income tax reporting.
Royce Micro-Cap Trust's investment goal is long-term capital growth, achieved by investing primarily in equity securities of companies with market capitalizations of $750 million or less at the time of investment.
This news is based on a press release statement from Royce Micro-Cap Trust, Inc.
InvestingPro Insights
Royce Micro-Cap Trust, Inc. (NYSE:RMT), with its recent announcement of a quarterly distribution, showcases its commitment to delivering value to its shareholders. An InvestingPro Tip highlights that the company has maintained dividend payments for an impressive 31 consecutive years, signaling a stable and reliable return for investors. Furthermore, another InvestingPro Tip notes that the company's liquid assets exceed its short-term obligations, providing a measure of financial stability and flexibility.
InvestingPro Data reveals that Royce Micro-Cap Trust has a market capitalization of approximately $480.97 million and operates with a relatively low P/E ratio of 6.46. This could potentially indicate an undervalued stock to some investors. Additionally, the data shows a solid dividend yield of 7.35%, which is particularly attractive for income-focused investors. The company's revenue for the last twelve months as of Q4 2023 stood at $8.26 million, reflecting a healthy growth rate of 10.29%.
For those interested in a deeper dive into the financial metrics and strategic insights of Royce Micro-Cap Trust, InvestingPro offers additional tips on their platform, which can be accessed at https://www.investing.com/pro/RMT. The breadth of data and analysis provided by InvestingPro can be a valuable resource for both current shareholders and potential investors looking to make informed decisions.
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