Distribution rates vs. yield

A CEF's distribution rate is the annualised cash it pays divided by a reference value. It is not a measure of what the portfolio earns. A fund can pay a 10% distribution rate from a portfolio yielding 6% by distributing capital gains or returning capital.

The measures we show

• Regular distribution rate on price — the latest regular payment × its annual frequency ÷ market price.
• Regular distribution rate on NAV — the same numerator ÷ NAV. The difference between the two is the premium/discount.
• Trailing 12-month yield — actual cash paid over the past year ÷ price, shown with and without special distributions.
• SEC yield — only when a fund reports it; most CEFs do not.

A special or year-end distribution is never annualised. If a fund pays $0.10 a month and a $1.00 special in December, its regular annualised distribution is $1.20, not $2.20 and certainly not $12.00.

Sponsors typically state that the distribution rate is not a portfolio yield and may exclude special payments from their published rate. We follow the same convention and label each figure.