BlackRock has announced distribution increases for a selection of its closed-end funds, marking a significant shift in the monthly payouts under their managed distribution plans. These changes will impact the Funds’ income, capital gains, and/or return of capital distributions, with updates on the funds’ monthly rates for the month of December.
Each fund listed has adopted a plan to support a level monthly distribution, allowing shareholders to receive consistent income throughout the year. These plans are designed to distribute available income or capital gains, ensuring that the monthly payout remains stable. In cases where the income from net investments or short-term capital gains is insufficient, the funds will make use of long-term capital gains or return capital in order to maintain the set payout amount.
Here are the key dates for the December distributions:
- Declaration Date: November 22, 2024
- Ex-Dividend Date: December 16, 2024
- Record Date: December 16, 2024
- Payable Date: December 23, 2024
December Distribution Changes for BlackRock Funds
- BlackRock Enhanced Capital and Income Fund (CII)
- Distribution: $0.1410
- Change: +$0.0415 (42%)
- BlackRock Enhanced Equity Dividend Trust (BDJ)
- Distribution: $0.0619
- Change: +$0.0057 (10%)
- BlackRock Enhanced Global Dividend Trust (BOE)
- Distribution: $0.0827
- Change: +$0.0197 (31%)
- BlackRock Enhanced International Dividend Trust (BGY)
- Distribution: $0.0426
- Change: +$0.0088 (26%)
- BlackRock Health Sciences Trust (BME)
- Distribution: $0.2621
- Change: +$0.0491 (23%)
- BlackRock Energy and Resources Trust (BGR)
- Distribution: $0.0973
- Change: +$0.0219 (29%)
- BlackRock Resources & Commodities Strategy Trust (BCX)
- Distribution: $0.0697
- Change: +$0.0179 (35%)
- BlackRock Utilities, Infrastructure & Power Opportunities Trust (BUI)
- Distribution: $0.1360
- Change: +$0.0150 (12%)
- BlackRock Science and Technology Trust (BST)
- Distribution: $0.2500
- Change: No Change
Source Breakdown of Distributions
Each Fund’s distributions are subject to various sources, including net income, realized short-term and long-term gains, and return of capital. These distributions are estimated as of October 31, 2024, with each Fund’s estimated sources for the current fiscal year outlined below:
- CII (BlackRock Enhanced Capital and Income Fund)
- Distribution: $0.0995
- 100% Return of Capital
- BDJ (BlackRock Enhanced Equity Dividend Trust)
- Distribution: $0.0562
- 31% Net Income
- 69% Return of Capital
- BOE (BlackRock Enhanced Global Dividend Trust)
- Distribution: $0.0630
- 24% Net Income
- 76% Return of Capital
- BGY (BlackRock Enhanced International Dividend Trust)
- Distribution: $0.0338
- 9% Net Income
- 91% Return of Capital
- BME (BlackRock Health Sciences Trust)
- Distribution: $0.2130
- 100% Return of Capital
- BGR (BlackRock Energy and Resources Trust)
- Distribution: $0.0754
- 21% Net Income
- 79% Return of Capital
- BCX (BlackRock Resources & Commodities Strategy Trust)
- Distribution: $0.0518
- 21% Net Income
- 79% Return of Capital
- BUI (BlackRock Utilities, Infrastructure & Power Opportunities Trust)
- Distribution: $0.1210
- 1% Net Income
- 50% Long-Term Capital Gains
- 49% Return of Capital
- BST (BlackRock Science and Technology Trust)
- Distribution: $0.2500
- 100% Return of Capital
Performance and Distribution Rate Information
The Funds’ performance is measured based on average annual total returns and distribution rates. For the 5-year period ending September 30, 2024, the following funds saw significant growth:
- CII: 12.91% annualized return, 5.54% current distribution rate.
- BDJ: 9.41% annualized return, 7.14% current distribution rate.
- BOE: 9.36% annualized return, 5.93% current distribution rate.
- BME: 10.37% annualized return, 5.65% current distribution rate.
- BGR: 10.01% annualized return, 6.34% current distribution rate.
However, shareholders are advised not to make conclusions about the funds’ investment performance based solely on the distribution amounts. The actual distribution amount per share is subject to change at the discretion of each Fund’s Board of Directors, and each Fund’s Board will periodically review whether these distribution plans should be continued, modified, or terminated.
In accordance with tax regulations, the exact source of the distribution for tax reporting purposes will be determined at the end of the fiscal year. For tax reporting, shareholders will receive Form 1099-DIV, outlining how to report these distributions.
