Eaton Vance Ltd Duration Income Fund Announces $0.0732 Dividend on Ex-Dividend Date of August 13, 2025

Introduction

Eaton Vance Ltd Duration Income Fund (EVV), a closed-end fund managed by Eaton Vance Corp, has once again reaffirmed its steady dividend-paying profile by declaring a cash dividend of $0.0732 per share. This marks the latest in a series of consistent distributions that align with the fund’s objective of providing regular income to investors. With the ex-dividend date set for August 13, 2025, the market is primed for a potential price adjustment following the ex-dividend close. The recent financial report and historical backtest data provide further insight into how investors might approach this event.

Dividend Overview and Context

The $0.0732 cash dividend per share is consistent with EVV’s long-standing policy of distributing returns to shareholders. As a closed-end fund, EVV relies on portfolio income and capital gains to sustain its dividend program. This dividend, which is fully in cash with no stock component, will result in a typical share price adjustment on the ex-dividend date, as shares will trade without the value of the dividend. Investors should note that the stock is expected to trade approximately $0.0732 lower on the ex-dividend date, barring any extraordinary market movements or news events.

Backtest Analysis

The backtest of EVV’s performance around ex-dividend dates provides valuable context for investors. Based on 16 historical dividend events, the fund has demonstrated a strong tendency to recover the dividend adjustment within an average of four trading days. Moreover, there is a 69% probability that the full price normalization will occur within 15 days after the ex-dividend date.

This pattern suggests that EVV typically experiences a predictable short-term correction followed by a swift recovery. Investors considering short-term strategies may find opportunities to buy ahead of the dividend or capture the rebound in the days following the ex-dividend date.

Driver Analysis and Implications

According to the latest financial report for the period ending before the dividend announcement, EVV reported total revenue of $140.44 million and net income attributable to common shareholders of $82.61 million, translating to $0.7109 in earnings per share. The fund’s operating income, income from continuing operations, and net income are all in line with strong performance, indicating that the dividend is well-supported by current earnings and cash flow.

EVV’s dividend payout ratio, while not explicitly stated, can be inferred to be moderate to conservative, given the fund’s strong earnings and consistent distribution history. In the broader market context, with fixed-income yields and dividend yields under pressure from rising interest rates, EVV’s regular and predictable income stream remains attractive to income-focused investors seeking alternatives to traditional bonds.

Investment Strategies and Recommendations

• Short-Term Investors: Consider buying ahead of the ex-dividend date to collect the $0.0732 cash dividend, or look to sell just before the ex-date if you do not wish to hold the stock post-dividend. The backtest supports a strategy of buying low post-ex-date and holding for quick recovery.
• Long-Term Investors: EVV’s consistent dividend and strong earnings support its place in a diversified income portfolio. Investors should continue to monitor the fund’s performance and distribution trends relative to its stated investment objectives.

Conclusion & Outlook

The Eaton Vance Ltd Duration Income Fund’s $0.0732 dividend on August 13, 2025, reaffirms its commitment to delivering regular income to shareholders. With strong earnings and a favorable historical backtest pattern, the fund continues to support its dividend and offers predictable short-term price behavior around ex-dividend dates. Investors may consider strategic entry or exit points in the days leading up to and following the ex-dividend date. The next earnings report will provide further insight into the fund’s performance and future dividend capacity.