Boulder Total Return Fund, Inc. Announces Level Distribution and Declares Dividend.BOULDER, Colo. -- The Boulder Total Return Fund, Inc. (NYSE NYSE See: New York Stock Exchange : BTF BTF Back to the Future (movie) BTF Berkshire Theatre Festival (Stockbridge, MA) BTF Blessthefall (band) BTF Bidirectional Texture Function ) announced today that its Board of Directors has approved a level distribution policy for the Fund. As approved, the Fund will begin paying a fixed monthly common stock distribution of $0.24 per share, per month. The distributions may consist of ordinary income, if any, long-term capital gains Long-term capital gain A profit on the sale of a security or mutual fund share that has been held for more than one year. , if any, short-term capital gains Short-term capital gain A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income. , if any, and return of capital, if any. The final tax character of the distributions will not be determined until after the end of the Fund's fiscal year. The Board has declared a monthly common stock distribution of $0.24 per share for the months of December 2007 and January 2008. As such, the December distribution will be payable December 31, 2007, to holders of record as of December 24, 2007; and the January distribution will be payable January 31, 2008, to holders of record as of January 24, 2008. The $0.24 per share monthly distribution is equivalent to 12.5% of the Fund's per share market price and 11.6% of the Fund's most recent net asset value, both on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. Currently, it is anticipated that the distribution will consists of return of capital to stockholders and ordinary income. A "return of capital" represents a return of a stockholder's original investment in the Fund's shares, and should not be confused with a dividend yield. The December distribution may include a component of capital gains, but this amount will not be known until the Fund's year-end. An IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Form 1099-DIV Form 1099-DIV A form sent to investors by investment fund companies. The form is a record of all taxable capital gains and dividends paid to an investor, including those that have been re-invested in a given taxation year. will be sent to stockholders indicating the tax characteristic of the distributions they received in 2007 and exactly how much would be ordinary income or long-term capital gains, if any, and return of capital, if any. To the extent stockholders receive a return of capital they will be required to adjust their cost basis by the same amount upon the sale of their Fund shares. Stockholders should seek their own tax advice regarding the reporting of income and the gain or loss on the sale of the Fund's shares. Although the Fund may indicate what it expects the tax characteristics of its distributions to be, it is subject to change depending on a number of factors, including market conditions throughout the year and the magnitude of income and realized gains for the year. Stockholders can expect to receive tax-reporting information for distributions from either their brokers or from the Fund's transfer agent indicating the exact composition per share of the dividends and distributions received during the calendar year. Stockholders should consult their tax advisor A tax advisor is a financial expert especially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in for proper tax treatment of the Fund's distributions. In adopting the Policy, the Fund seeks to provide a regular monthly distribution to its common stockholders which is not dependent on the amount of income earned or capital gains realized by the Fund. The Policy recognizes that many investors are willing to accept the potentially higher asset volatility of the Fund's equity investments, but would prefer a consistent cash distribution each month for reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. or other purposes of their choosing. The Fund seeks to have its long-term investment return exceed the level of distributions under the Policy; however, there can be no guarantee that this goal will be met. The Fund has not yet received exemptive relief from the SEC to pay out more than one capital gain distribution per year. As such, if the Fund has capital gains in a given tax year, the Fund may be required to declare and pay a capital gains distribution in addition to the regular monthly distributions. As of Friday, October 26, 2007, the Fund's net asset value was $24.73 and the closing market price was $22.95, which was a 7.20% discount to NAV See navigation system and navigation bar. . |
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