Herzfeld Credit Income Fund amends dividend reinvestment plan

Published 16/07/2025, 21:06
Herzfeld Credit Income Fund amends dividend reinvestment plan

MIAMI BEACH - Herzfeld Credit Income Fund, Inc. (NASDAQ:HERZ) announced Wednesday that its Board of Directors has approved amendments to the Fund’s Dividend Reinvestment Plan, which will take effect 30 days after notice is mailed to shareholders. The Fund has maintained its dividend payments for 15 consecutive years, according to InvestingPro data, demonstrating a strong commitment to shareholder returns.

The modifications, approved on May 8, 2025, align the plan with more recent dividend reinvestment plans in the industry. A key change allows the Fund to issue new shares to plan participants regardless of whether the Fund’s stock is trading at a premium or discount to its net asset value (NAV).

Under the previous plan, the Fund was required to purchase shares on the open market when the stock traded below NAV. The amended plan determines the number of shares received by dividing the distribution amount by 95% of the market price at close of regular trading on the NASDAQ Capital Market, or if no sale occurs that day, the average between closing bid and asked quotations.

The Fund, which specializes in credit income investments, encourages shareholders to review the plan to determine whether they wish to remain or become participants.

The information is based on a press release statement from the Fund. Thomas J. Herzfeld Advisors, Inc., founded in 1984, serves as the Fund’s investment advisor. Subscribers to InvestingPro can access additional insights, including 3 more exclusive ProTips about HERZ’s financial health and valuation metrics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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