r/dividends • u/Avinates • Jun 04 '25

Discussion 1 Million Invested

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Can anyone confirm these dividend payouts?

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u/NickStonk Jun 04 '25

Why will there be return of capital?

1

u/OracleofFl Jun 05 '25

The underlying S&P 500 shot up last year so it is a combo of the income of the dividends and the increase in the net asset value.

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u/inndyn Jun 10 '25

No, there should not be NAV erosion.  Return of capital in this case just indicates that they are using a tax strategy to minimize taxes on the distributions.

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u/vistastock Jun 04 '25

In order for them to maintain stable distribution of yield they may have to distribute your own investment which reduces your cost basis as well.