#USA #Philadelphia #preferred shares #abrdn Income #Series A Shares

ABRDN Income Credit Strategies Fund's Dividend Announcement

On June 10, 2025, the Board of Trustees for the abrdn Income Credit Strategies Fund declared a notable cash distribution. This distribution amounts to $0.328125 per share for the fund's 5.250% Series A Perpetual Preferred Shares (NYSE symbol: ACP PRA). The payment is scheduled for June 30, 2025, benefiting shareholders on record as of June 20, 2025. It's significant to note that the ex-dividend date is the same as the record date, meaning that shares must be purchased before this cutoff to receive the impending dividend.

The Series A Preferred Shares, initially issued at a price of $25.00 per share on May 10, 2021, are currently trading on the New York Stock Exchange with a rating of A2 by Moody's Investors Service. Each share is entitled to an annual dividend rate of $1.3125, distributed quarterly. Such distributions could arise from various sources, not limited to ordinary income, encompassing net realized short- and long-term capital gains, as well as return of capital.

Investors should keep in mind that the actual amounts for these distributions, as well as their sources from which they are derived for tax reporting, could vary throughout the fiscal year depending on the fund's overall investment performance. Furthermore, shareholders will receive a Form 1099-DIV in January 2026, providing a breakdown of distribution amounts and composition. This document is crucial for understanding the tax implications for the 2025 calendar year.

It's essential not to link the distribution amount directly to the fund’s investment performance. The fluctuating nature of value shares—often traded above or below the net asset value (NAV)—indicates potential volatility, emphasizing the inherent risks of investment in closed-end funds. While there is a possibility of securing favorable returns, there is no guarantee that the abrdn Income Credit Strategies Fund will meet its investment objectives, nor does past performance assure future results.

As a key player in the market, Aberdeen Investments, the umbrella under which the fund operates, continues to enhance its offerings through careful fund management. Investors are encouraged to remain informed about any changes impacting dividends and overall fund performance to make well-informed decisions.

For those considering investments in closed-end funds, it is advisable to conduct thorough research and possibly consult financial advisors to better understand personal risk tolerances and expectations for dividends.

In summary, the abrdn Income Credit Strategies Fund's quarterly disbursement is seen as a positive for current and potential investors, delivering solid returns as the market evolves. Keeping an eye on developments in dividend distributions will be crucial for shareholders looking to optimize their investments moving forward.