FFC and FLC Announce Regular Monthly Dividends and Special Year-End Dividends
December 10 2012 - 5:19PM
Business Wire
The Boards of Directors of Flaherty & Crumrine/Claymore
Preferred Securities Income Fund Incorporated (NYSE: FFC)
and Flaherty & Crumrine/Claymore Total Return Fund Incorporated
(NYSE: FLC) today declared regular monthly dividends and
declared a special year-end dividend to be paid in December.
The regular monthly dividend rate for FFC will continue to be
$0.136 per share, which equates to an annual dividend of $1.632 per
share. In addition, shareholders will receive a special year-end
dividend from net investment income of $0.117 per share.
The new regular monthly dividend rate for FLC will be $0.136 per
share, which equates to an annual dividend of $1.632 per share.
This new monthly dividend represents a decrease of approximately
2.5% from the prior monthly dividend. In addition, shareholders
will receive a special year-end dividend from net investment income
of $0.085 per share.
Donald F. Crumrine, Chairman of the Boards of the funds, said
“We are pleased that both funds delivered on their objectives of
high current income during 2012. The funds ended the year with
undistributed income, primarily resulting from modest increases in
leverage balances throughout the year, lower cost of leverage, and
slightly lower redemption experience than expected. As we have
previously discussed, our market continues to transition from trust
preferred securities to more traditional preferred stock, and
existing issuers of preferred from many industries continue to
refinance higher-coupon securities where possible. This transition
is driven both by regulatory guidelines as well as the absolute
level of interest rates. As a result, we have recalibrated FLC’s
dividend to reflect the modestly lower income we expect to earn on
its portfolio in the coming year.”
The December monthly dividend and the special year-end dividend
will be paid on December 31, 2012 to holders of record of each
fund’s common stock on December 21, 2012. The expected ex-dividend
date is December 19, 2012. The tax breakdown of all 2012
distributions will be available early next year, but at this point
the funds anticipate that all dividends paid in 2012, including the
special year-end dividend, will be taxable as income and not
capital gains.
FFC and FLC were organized in 2003 as closed-end, diversified
investment companies. FFC invests primarily in preferred securities
with an investment objective of high current income consistent with
preservation of capital. FLC invests primarily in preferred and
other income-producing securities with a primary investment
objective of high current income and a secondary objective of
capital appreciation. FFC and FLC are managed by Flaherty &
Crumrine Incorporated, an independent investment adviser which was
founded in 1983 to specialize in the management of portfolios of
preferred and related securities. Flaherty & Crumrine also
manages two other U.S. closed-end funds: Flaherty & Crumrine
Preferred Income Fund (NYSE: PFD); and Flaherty & Crumrine
Preferred Income Opportunity Fund (NYSE: PFO).
Website: www.fcclaymore.com
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