return of capital

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Return of capital

A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Capital Dividend

A dividend that comes from what an investor has paid into a publicly-traded company, rather than from its earnings. That is, a capital dividend occurs when a company gives back what the investor has invested. It may occur when a company must pay a required dividend but earnings make it unable to do so from its profits. Capital dividends may be a sign that a company is not financially healthy. In any case, they reduce the amount of capital that the company has to invest in its operations. They are also called return of capital.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

return of capital

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Shareholders are not required to pay for the Resulting Issuer Shares they receive by way of the Return of Capital, to ‎tender or surrender their Blackhawk shares, or to take any other action in connection with the Return of Capital.‎
Safeguard Scientifics announced that it has hired Evercore as its financial advisor as it continues to pursue its previously announced strategy to monetize its portfolio of partner company interests in a fashion which maximizes the return of capital and shareholder value.
For the current fiscal year as of 30 September 2018, IGD estimates that approximately 21% of each distribution is characterised as net investment income and 79% is characterised as return of capital, while IID estimates approximately 27% of each distribution is characterised as net investment income and 73% is characterised as return of capital.
To the extent that sufficient investment income is not available on a monthly basis, the Fund's distributions may consist of return of capital in order to maintain the Distribution Amount.
ENBD REIT's NAV is USD 289 million (AED 1.1 billion), or USD 1.14 per share, following dividend and return of capital payments made in June 2018.
In addition to the monthly distributions, investors will receive approximately 35 cents of undistributed tax-free income as well as $14.77 of return of capital upon the liquidation of the fund.
In addition, Suominen's board of directors will proposes to the Annual General Meeting a return of capital of EUR0.11 per share from the financial year 2017.
The company's distributions may include a return of capital to shareholders to the extent that the company's net investment income and net capital gains are insufficient to support the distributions.
The House justice committee approved the substitute bill for the return of capital punishment in December.
That meant its total return of capital to shareholders in 2015 was about $72 million, or some $2.25 per share.
E&P essentially is a quantitative measure of a corporation's ability to make distributions to its shareholders in excess of distributions considered a return of capital. Although the Code refers to E&P numerous times, nowhere does it provide a comprehensive list of procedures necessary to calculate E&P.