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PHILADELPHIA, PA / ACCESSWIRE / August 8, 2024 / abrdn Global Dynamic Dividend Fund (NYSE:AGD) and abrdn Total Dynamic Dividend Fund (NYSE:AOD) (collectively, the "Funds") each, a closed-end management investment company, announced today its Board of Trustees (each a "Board" and collectively, the "Boards") have each approved the implementation of a managed distribution policy which will pay monthly, 12% of the average daily NAV for the previous month as of the month-end prior to declaration ("Managed Distribution Policy"). The new Managed Distribution Policy will commence with the distributions payable on August 30, 2024, to all shareholders of record as of August 23, 2024 (ex-dividend date August 23, 2024).
Based on each Fund's respective distribution rate announced below, shareholders of AGD will see an approximate 70% increase and AOD shareholders an approximate 74% increase in the monthly distribution rate for August.
Ticker | Exchange | Previous Stable | New Managed | Declared Distribution Amount |
AGD | NYSE | Stable monthly distribution of $0.065 | 12% percent of the average daily NAV for the previous month as of the month-end prior to declaration | $0.11 |
AOD | NYSE | Stable monthly distribution of $0.0575 | 12% percent of the average daily NAV for the previous month as of the month-end prior to declaration | $0.10 |
The Funds each distribute monthly all or a portion of its net investment income, including current gains, to common shareholders. The distributions for each Fund will be made from net investment income, net realized capital gains and, to any extent necessary, return of capital.
abrdn Global Dynamic Dividend Fund (AGD) - 73% Increase
AGD pays a stable distribution that is paid monthly at an annual rate, set once a year. On August 7, 2024, the Board of AGD, approved the new Managed Distribution Policy, commencing with the August 2024 distribution.
Based on the NAV as of July 31, 2024, of $11.39 this would equate to an increased distribution on NAV from $0.065cps to $0.11cps or an increased annualized NAV distribution rate from 6.8% to 12%, an increase of approximately 76%. Based on the share price as of July 31, 2024, of $10.01 this would equate to an increased annualized share price distribution rate from 7.8% to 13.7%. The NAV however will fluctuate with changes in market conditions which will impact the payment of the monthly distributions.
abrdn Total Dynamic Dividend Fund (AOD) - 70% Increase
AOD pays a stable distribution that is paid monthly at an annual rate, set once a year. On August 7, 2024, the Board of AOD, approved the new Managed Distribution Policy, commencing with the August 2024 distribution.