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WHEATON, Ill. - First Trust Enhanced Equity Income Fund (NYSE:FFA) announced Wednesday an increase in its quarterly distribution to $0.3875 per share from $0.35 per share, representing a 10.71% increase. According to InvestingPro data, the fund has maintained dividend payments for 20 consecutive years, with a current dividend yield of 6.56%.
The distribution will be payable on September 30, 2025, to shareholders of record as of September 22, 2025, which is also expected to be the ex-dividend date.
Based on the September 9 net asset value of $22.66, the distribution represents an annualized rate of 6.84%. The rate is 7.26% based on the fund’s closing market price of $21.34 on the same date.
The Fund’s Board of Trustees approved a managed distribution policy that allows for more frequent distributions of long-term capital gains. Under this plan, the Fund intends to maintain the quarterly distribution of $0.3875 per share regardless of its performance during any particular period.
The distribution may consist of net investment income, return of capital, and/or realized capital gains. The final determination of the source and tax status of all distributions paid in 2025 will be made after year-end and provided on Form 1099-DIV.
First Trust Enhanced Equity Income Fund is a diversified, closed-end management investment company that aims to provide a high level of current income and gains, with capital appreciation as a secondary objective. The Fund invests in a diversified portfolio of equity securities. With a market capitalization of $427.35 million and an attractive P/E ratio of 5.65, InvestingPro analysis reveals 5 additional key insights about the fund’s performance and financial health. Subscribers can access detailed valuation metrics and comprehensive financial analysis.
First Trust Advisors L.P. serves as the Fund’s investment advisor, managing approximately $281 billion in assets as of July 31, 2025. Chartwell Investment Partners, LLC acts as the sub-advisor with approximately $12.5 billion in assets under management as of May 31, 2025. The fund maintains strong liquidity with a current ratio of 3.98, indicating robust financial health according to InvestingPro metrics.
The information is based on a press release statement from the Fund.
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