Discover Hercules Capital's (HTGC) Exciting Q2 2023 Dividend Increase - A Positive Outlook for Shareholders
Hercules Capital, Inc. (HTGC), a leading specialty finance provider to innovative and growth-oriented companies, has recently made an exciting announcement. The company's Board of Directors has decided to raise the total cash distribution for the second quarter of 2023, providing great news for its shareholders.
Hercules Capital's Board of Directors has declared a total cash distribution of $0.48 per share for the second quarter of 2023. This represents an increase in dividends and indicates the company's commitment to providing value to its shareholders.
The dividend distribution process is set to occur on the following dates:
Hercules Capital follows a variable distribution policy, aiming to distribute approximately 90% to 100% of the company's taxable quarterly income or potential annual income for a specific year. Moreover, throughout the year, the Board of Directors may choose to pay additional supplemental distributions. This decision allows the company to distribute most of its annual taxable income in the same year it was earned or carry over any excess taxable income for future distribution payments.
It's important to note that the tax attributes of Hercules Capital's distributions are assessed annually, based on the company's taxable income and distributions paid for the full year. Therefore, the determination made on a quarterly basis may not precisely reflect the actual tax attributes of the distributions for the entire year. For the quarter ended June 30, 2023, all distributions were derived from the company's current and accumulated earnings and profits. However, this determination may not entirely represent the tax attributes of the company's 2023 full-year distributions to stockholders.
Pursuant to Internal Revenue Code Section 871(k), certain funds generate "Qualified Interest Income" (QII) that may be exempt from U.S. withholding tax on foreign accounts. Hercules Capital, being a regulated investment company ("RIC"), has designated 87.39% of the distributions declared for the second quarter of 2023 on its common stock as QII. This move benefits non-U.S. shareholders by allowing them to be exempt from U.S. withholding tax when proper documentation is provided.
Hercules Capital's dividend increase announcement for the second quarter of 2023 reflects the company's dedication to rewarding its shareholders. By maintaining a variable distribution policy and considering the tax implications, the company strives to maximize the benefits for its investors. With a focus on supporting innovative and growth-oriented businesses, Hercules Capital continues to position itself as a leading specialty finance provider in the market. Shareholders can look forward to a positive financial outlook and continued value from their investments in the company.
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