Source Capital Announces 2025 Dividend and Tax Allocations

Source Capital Inc. ( (SOR) ) has provided an update.

On January 28, 2026, Source Capital detailed the U.S. federal income tax treatment of its 2025 dividends, which totaled $2.4996 per share over the year, with $1.798464 per share classified as ordinary income dividends (a portion of which qualifies for favorable rates) and $0.701136 per share as long-term capital gain distributions, along with related state tax character and implications for corporate shareholders and participants in its dividend reinvestment plan. The fund also announced that, as of December 31, 2025, it designated $2.50739554 per share of retained net long-term capital gains as a deemed distribution, under which Source Capital will pay a 21% federal tax at the fund level while shareholders are treated as having received a capital gain dividend and a corresponding tax credit, effectively allowing the fund to retain capital to support future investment opportunities and net asset value growth while passing through the tax attributes to investors via Form 2439 and related refund mechanisms, including special handling for shares held in retirement accounts.

More about Source Capital Inc.

Source Capital Inc. (NYSE: SOR) is a closed-end investment fund that has elected to be treated as a regulated investment company for U.S. federal tax purposes, distributing income and capital gains generated from its diversified investment portfolio to shareholders while managing its net asset value and capital structure in a tax-efficient manner.

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