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Royce Micro-Cap Trust Declares Attractive Quarterly Dividend for Shareholders


Lauren Miller

June 3, 2024 - 18:52 pm


Royce Micro-Cap Trust Announces Quarterly Distribution and Year-to-Date Insight on Investment Gains

NEW YORK, June 3, 2024 /PRNewswire/ — In an exciting announcement from Royce Micro-Cap Trust, Inc. (NYSE-RMT), a dividend distribution has been declared which presents an enticing proposition for current shareholders. The acclaimed investment firm has confirmed a quarterly dividend of $0.18 per share on Common Stock. Shareholders have the flexibility to receive the dividend in the form of additional Common Stock shares or opt for cash payment, based on individual preference. The distribution is set for June 24, 2024, for those recorded as shareholders by the end of business on June 13, 2024. Stocks will be traded ex-dividend on the same date, June 13. Reinvestment pricing will be ascertained on June 20, 2024.

Royce Micro-Cap Trust takes a strategic fiscal approach, having implemented a Distribution Policy that involves making quarterly distributions on its Common Stock. The annual distribution is calculated at 7% of the compound average of the company's net asset values (NAVs) from the end previous four quarters. Notably, the distribution in the fourth quarter is decided based on the higher value of either 1.75% of the rolling average or as per the IRS’s minimum requirement. This policy, including the specified rate, remains under the discretion of the Fund's Board of Directors and could see future modifications.

The anticipated sources of the dividend for the payout date of June 24, 2024, as well as the year-to-date allocations for 2024 up to May 31, have been outlined. For the specific distribution of $0.18 per share, no portions are attributed to net investment income or return of capital; instead, the distribution is comprised of 34% from net realized short-term gains, totaling $0.0612 per share, and 66% arising from net realized long-term gains, amounting to $0.1188 per share. Year-to-date, a similar distribution structure is reflected in the distributions per share, with the total share distributions reaching $0.35, and again no investment income or return of capital components.

Investors are cautioned not to form conclusions about the fund's performance based solely on the present distribution or the Fund's Distribution Policy terms. It is essential to understand that these announced distributions are only preliminary estimates and are not for tax reporting purposes. The actual amounts and distribution sources for tax purposes will depend on the Fund's financial achievements during the remainder of its fiscal year and may be affected by tax regulations. Shareholders will receive a Form 1099-DIV for the respective calendar year, detailing how these distributions should be reflected for federal income tax reporting.

Fund Performance and Distribution Rate Information:

The Fund operates with transparency when it comes to performance and distribution assessments, providing the average annual total return in relation to NAV that reflects a 5-year span ending on May 31, 2024. This return rate is the compound average of the Fund's annual NAV total return—a measure of the Fund's NAV's yearly change, assuming dividends and distributions are reinvested.

Moreover, the Annualized Current Distribution Rate is expressed as the current fiscal period's distribution rate annualized relative to the Fund's NAV as of May 31, 2024. In conjunction with this, the Fund discloses the Cumulative Total Return, which represents the NAV's percentage change from December 31, 2023, to May 31, 2024, presuming the reinvestment of distributions. In addition, the Fund communicates the Cumulative Fiscal Year Distribution Rate, which specifically relates to the dollar value of distributions for the fiscal year-to-date as a percentage of the NAV as of May 31, 2024.

The disclosed figures denote Royce Micro-Cap Trust's stability and deliberate stewardship. For instance, as of the five-year period ending May 31, 2024, the Fund's RMT is praiseworthy, sitting at a solid 13.87%. The Annualized Current Distribution Rate approximates a sustainable 6.47%, while the Cumulative Total Return suggests a promising growth with a figure of 8.31%. Furthermore, reflecting on the funds' deliberate cash distributions, the Cumulative Fiscal Year Distribution Rate is 3.14%.

About Royce Micro-Cap Trust, Inc.:

Royce Micro-Cap Trust, Inc. distinguishes itself as a closed-end diversified management investment company, with shares proudly traded on the New York Stock Exchange. Anchored by its ultimate goal of long-term capital growth, the Fund's investment strategy is concentrated on acquiring equity securities, specifically of companies whose market capitalizations do not exceed $750 million at the time of the investment.

This investment threshold is particularly strategic as it focuses the fund's efforts on the segment of the market that often escapes the radar of larger investment entities. Engaging primarily in what are known as micro-cap stocks, the Fund seeks not only to provide a path to growth for their investors but also to foster and support the growth of smaller enterprises that have potential for significant development.

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For additional information, you can reach out to Royce & Associates, the fund's trusted manager, ensuring professional stewardship and expertise in achieving the Fund's investment objectives.


To summarize the recent declaration and insights from Royce Micro-Cap Trust, it remains clear that the company takes a robust and strategic approach to its distribution policy and overall investment performance. With proactive measures in place to ensure flexibility and growth, Royce Micro-Cap Trust, Inc. continues to make headway in the field of micro-cap investment, aligning with their long-term vision of maximizing capital growth for their shareholders.

Investors within the fund and potential shareholders alike can rest assured knowing that the distributions and reinvestment policies are handled with the utmost care, designed to optimize returns while maintaining a level of vigilance in navigating the ever-volatile investment landscape. As the global market evolves, so does the technique and strategy of Royce Micro-Cap Trust, indicating a commitment to not only adapt but also to lead in the world of micro-cap investment.

As we move forward within the 2024 fiscal year, the financial arena will undoubtedly continue to present challenges and opportunities alike. Royce Micro-Cap Trust, with its finger on the pulse of emerging market trends and leveraging its expertise in micro-cap investments, is well-positioned to maneuver these dynamics to the benefit of its shareholders. Their announced distribution and insightful analysis into the year's progress offer a glimpse into an organization that is as much about generating revenue as it is about prudent financial governance.

With a robust framework for assessing and distributing shareholder dividends, coupled with comprehensive performance data, Royce Micro-Cap Trust prides itself on maintaining transparency and clear communication with its investors. This latest announcement exemplifies the trust's dedication to providing shareholder value through a structured distribution plan while maintaining a focus on net asset value gains—a balance essential for sustained high performance in the investment industry.

In conclusion, the recent developments from Royce Micro-Cap Trust affirm the Fund's strong position in the market and its dedication to maintaining policies that serve the best interests of its investors. As always, investors are encouraged to review the terms of the Fund's Distribution Policy, understand the nature of the distributions, and consider how these factors fit within the broader scope of their personal investment strategies.

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As the dividend distribution date approaches, shareholders can look forward to a reflection of the Trust's past performance and fiscal prudence. With a focus on long-term capital growth and a strategic eye on micro-cap equities, Royce Micro-Cap Trust stands as a beacon in the financial sector, exemplifying how directed investment strategies can yield valuable opportunities for growth and return on investment.

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For more detailed information about the distribution policies, financial performance data, and investment opportunities, interested parties are recommended to consult the resources provided by Royce & Associates. Their knowledge and insights serve as a crucial tool for not just understanding the implications of these financial decisions, but also for making informed investment choices in the landscape of micro-cap stocks.

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It's with careful consideration and strategic planning that Royce Micro-Cap Trust continues to navigate through the complexities of the financial market, reinforcing its commitment to its shareholders and to the growth of underserved but promising sectors of the economy. As we look to the second half of 2024, the investment community will surely be keeping a close look at how Royce Micro-Cap Trust's decisions influence the wider context of the financial landscape.

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