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NEW YORK - Royce Micro-Cap Trust, Inc. (NYSE:RMT), a closed-end investment company with a market capitalization of $440 million, has announced a quarterly distribution of $0.18 per share on its Common Stock. The distribution is scheduled for June 25, 2025, to shareholders recorded by June 12, 2025, with the ex-dividend date also on June 12, 2025. The fund currently offers an attractive 8.69% dividend yield and has maintained dividend payments for 32 consecutive years, according to InvestingPro data. Stockholders have the option to receive the distribution in additional shares of Common Stock or cash, contingent upon their election.
This distribution is part of the Fund’s Distribution Policy to issue quarterly distributions at an annual rate of 7% based on the rolling average of the prior four quarter-end net asset values (NAVs), with the fourth quarter distribution being the higher of 1.75% of the rolling average or the minimum required by IRS regulations. The Fund’s Board of Directors retains the discretion to modify the policy and its annual rate. InvestingPro analysis reveals the fund maintains strong liquidity with a current ratio of 4.97, indicating robust financial health to support its distribution policy.
The source of the distribution to be paid on June 25 is entirely from net realized long-term gains, as per the Fund’s estimated allocations as of May 31, 2025. This estimation reflects a consistent allocation pattern for the year-to-date distributions, with all amounts sourced from net realized long-term gains.
Investors are cautioned not to infer the Fund’s investment performance from the amount of the distribution or the terms of the Distribution Policy. The reported distributions are estimates and are not provided for tax reporting purposes. The actual sources for tax reporting will depend on the Fund’s investment experience throughout the fiscal year and may be subject to tax regulation changes. Shareholders will receive a Form 1099-DIV for calendar year reporting.
As of May 31, 2025, the Fund has experienced an average annual total return of 12.71% in relation to its NAV over the last five years. The fund currently trades at a P/E ratio of 6.81 and has seen a year-to-date return of -8.26%. With a beta of 1.23, the fund shows moderately higher volatility than the broader market. The Fund’s investment objective is to achieve long-term capital growth by primarily investing in equity securities of companies with market capitalizations of $750 million or less at the time of investment. For detailed analysis and additional insights, investors can access more metrics on InvestingPro, which features over 30 financial metrics and exclusive investment tips.
This distribution announcement is based on a press release statement from Royce Micro-Cap Trust, Inc.
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