The XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has announced its regular monthly distribution of $0.085 per share on its common shares (NYSE: XFLT), with payment scheduled for April 1, 2024, to shareholders of record as of March 15, 2024. This distribution remains consistent with the previous month’s distribution.
Key dates for the distribution are as follows:
- Ex-Dividend Date: March 14, 2024
- Record Date: March 15, 2024
- Payable Date: April 1, 2024
- Amount: $0.085 per common share
- Change from Previous Month: No change
Common share distributions may include net investment income, capital gains, and/or return of capital. Shareholders will receive details on the tax characteristics of the distributions on Form 1099 after the end of the 2024 calendar year.
The Trust’s investment income and capital gains can vary, but it aims to maintain stable monthly distributions over time. Investments in Collateralized Loan Obligations (CLOs) are subject to complex tax rules, potentially resulting in significant differences between GAAP income and taxable income.
As a registered investment company, the Trust is subject to a 4% excise tax if it fails to distribute at least 98% of its ordinary income and 98.2% of its capital gains. The Board of Trustees may decide to retain income or capital gains under certain circumstances.
Common share distributions may exceed net investment income, potentially resulting in a return of capital. Such returns may not be taxable but could affect shareholders’ tax basis and future gains or losses upon share disposition.
Future distributions are subject to the discretion of the Board of Trustees and depend on various factors, including financial performance and available cash.
The Trust’s investment objective is to seek attractive total return with an emphasis on income generation, primarily within the private credit markets.
XFLT’s common shares trade on the New York Stock Exchange under the symbol “XFLT,” while its 6.50% Series 2026 Term Preferred Shares trade under the symbol “XFLTPRA.”
