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©Reuters.
MIAMI BEACH – Herzfeld Caribbean Basin Fund, Inc. (NASDAQ:CUBA) announced a quarterly dividend to shareholders consisting of both common stock and cash. The fund, which specializes in investing in the Caribbean Basin, announced that the distribution is part of its managed distribution policy aimed at providing a stable rate of return to shareholders.
The distribution is set at $0.135,375 per share, with up to 20% in cash and the remaining 80% in common stock. The payment date for this distribution is scheduled for May 10, 2024 to shareholders of record as of March 27, 2024. Determined by the volume-weighted average price of common stock on the Nasdaq Capital Market from April 23, 2024 to April 25, 2024. Number of shares distributed.
Shareholders may choose to pay distributions in cash or shares, but the total amount of cash distributed will not exceed 20% of the basis. Anyone who does not submit a completed election form by the April 25, 2024 deadline will automatically receive the dividend in stock. The investment feature of the Dividend Reinvestment Plan will be suspended for this distribution and then resumed.
The Fund expects that distributions under its policy will likely include a return of capital. This is a portion of a shareholder’s investment being repaid and should not be confused with yield or income. This policy may be reviewed and modified or terminated by the Board of Directors at any time.
The Fund’s policy, established on December 19, 2023, is to achieve a certain minimum distribution rate on a quarterly basis, with the current annual rate being 15% of the Fund’s net asset value. However, the Fund cannot guarantee the effect this policy will have on stock market prices or whether market prices will reflect a discount to net asset value compared to before adoption of the policy.
The Fund Board suspended the Plan indefinitely on August 10, 2023, then reinstated the Plan on November 22, 2023, and declared quarterly distributions in December. The Fund will distribute all available investment income and return capital as necessary to maintain managed distribution levels in accordance with the Internal Revenue Code.
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