In a notable performance, Royce Micro-Cap Trust (RMT) stock has reached a 52-week high, touching $10.4 USD, with an impressive dividend yield of 6.98%. According to InvestingPro data, the fund has maintained dividend payments for 31 consecutive years, showcasing its commitment to shareholder returns. This peak reflects a significant uptrend for the closed-end fund, which specializes in investing in small-cap companies with high growth potential. The fund has actually delivered a remarkable 29.49% return over the past year, supported by strong fundamentals including a healthy P/E ratio of 7.72 and a robust current ratio of 5.33. InvestingPro analysis reveals several more bullish indicators for RMT, with its overall financial health score rated as GOOD. The 52-week high milestone underscores the fund's resilience and the successful execution of its investment strategy in a fluctuating economic landscape.
In other recent news, Royce Micro-Cap Trust, Inc. has declared a quarterly distribution of $0.18 per share on its Common Stock, set to be payable on September 23, 2024. The distribution can be taken in additional shares of Common Stock or in cash, based on the stockholder's preference. This development follows the company's distribution policy which involves quarterly payments to shareholders, based on an annual rate of 7% of the rolling average of the prior four calendar quarter-end net asset values (NAVs).
However, the policy and its annual rate are subject to change by the Fund’s Board of Directors. The current distribution includes a return of capital, signifying that a part of the distributed money is from the invested capital in the Fund and not just income or capital gains. The estimated allocation of the distribution as of August 31, 2024, indicates 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.
These recent developments are part of Royce Micro-Cap Trust's ongoing operations and investment strategy, which aims for long-term capital growth through primarily investing in equity securities of companies with market capitalizations of $750 million or less at the time of investment.
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