The Madison Covered Call & Equity Strategy Fund (the “Fund”) has declared its regular quarterly distribution of $0.18 per share on its common shares (NYSE: MCN). This distribution will be payable on December 31, 2024, to shareholders of record as of December 17, 2024. The distribution amount remains unchanged from the previous quarter.
Key dates for this declaration are as follows:
- Ex-Dividend Date: December 17, 2024
- Record Date: December 17, 2024
- Payable Date: December 31, 2024
- Amount: $0.18 per share
- Change from Previous Quarter: No change
Distributions may be paid from net investment income (including interest and dividends), capital gains, and/or a return of capital. The specific tax characteristics of the distributions will be reported to shareholders on Form 1099 after the end of the 2024 calendar year. Shareholders should be aware that the source of the distribution may not be from net income or profit. For additional information on distributions, visit www.xainvestments.com.
While the Fund’s net investment income and capital gains can fluctuate, the Fund aims to provide consistent quarterly distributions to common shareholders. The final taxable income for the current fiscal year will not be determined until the Fund’s tax returns are filed.
As a registered investment company, the Fund is subject to a 4% excise tax if it does not distribute at least 98% of its ordinary income and 98.2% of its capital gains, adjusted for certain losses, by the end of the calendar year. In certain cases, the Fund may choose to retain income or capital gains if it is deemed in the best interest of shareholders.
It’s important to note that the Fund’s distributions may exceed its net investment income, meaning that part of a distribution could be a return of capital, which reduces the shareholder’s tax basis in their common shares. Although a return of capital is not generally taxable, it can impact the potential gain or loss when shares are sold.
Future distributions are subject to approval by the Fund’s Board of Trustees, which considers various factors including net investment income, financial performance, and available cash. There is no assurance that future distributions will match the current or past amounts, or that the Board may decide to suspend or discontinue distributions in the future.
The Fund’s objective is to achieve a high level of current income and capital gains, with long-term capital appreciation as a secondary goal. It pursues this objective by investing in common stocks and employing an option strategy, primarily through writing covered call options to generate income and gains.
For more details, visit the Fund’s website at www.xainvestments.com.
