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Mexico Fund announces $0.22 per share cash distribution under Managed Distribution Plan.
ByAinvest
Wednesday, Apr 30, 2025 9:04 am ET1min read
The Mexico Fund announced a $0.22 per share cash distribution to shareholders as part of its Managed Distribution Plan. The distribution is based on net investment income, capital gains, and return of capital, but the exact character is unknown until the end of the fiscal year. The Fund estimates that the distribution is comprised of 62% net investment income, 28% capital gains, and 10% return of capital.
The Mexico Fund (NYSE: MXF) has announced a cash distribution of $0.22 per share to stockholders of record as of April 22, 2025, payable on April 30, 2025. This distribution is part of the fund's Managed Distribution Plan (MDP), which aims to provide shareholders with consistent income regardless of short-term market fluctuations [1].The distribution is broken down into three components:
- Net investment income: 46.34% ($0.1020 per share)
- Net realized short-term capital gains: 8.23% ($0.0181)
- Net realized long-term capital gains: 10.10% ($0.0222)
- Return of capital: 35.33% ($0.0777)
The fund's impressive 21.15% average annual total return over the past five years ended March 31, 2025, underscores its strong long-term performance. However, the more modest 2.08% cumulative return for the current fiscal year (since November 1, 2024) indicates a slowdown in recent performance [1].
The current annualized distribution rate stands at 3.00%, with a fiscal year-to-date cumulative total return of 2.08%. The fund's MDP ensures that distributions are subject to final tax reporting through Form 1099-DIV, providing shareholders with clear tax information [1].
For income-focused investors, this distribution offers a moderate yield, with the return of capital component potentially providing tax advantages. However, it is crucial to monitor the fund's overall performance to ensure that the return of capital does not negatively impact the fund's net asset value (NAV) over time [1].
References:
[1] https://www.stocktitan.net/news/MXF/the-mexico-fund-inc-pays-zsyr3osnzbi3.html
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