You receive capital gain distributions when the fund sells some of its assets and then passes along a portion to you. This distribution that you get is regarded by the IRS as a capital gain, not as ordinary dividends such as the interest you get from your bank account. It is important to separate capital gain distributions from ordinary dividends because capital gains are taxed more favourably. See also "Ordinary Dividends."
A payment to fund profits (long-term gains) realised on the sale of the fund's securities. The net asset value of the fund is reduced by the amount of the distribution. For equity funds, these amounts are usually paid out once a year, in December. Fixed-income funds may include capital gains in their monthly distributions.
Payments to mutual fund shareholders of net gains realized on the sale of the fund's portfolio securities. Long-term gains are earned on securities held in the portfolio more than one year. Short-term gains, on the sale of securities held less than one year, are treated as ordinary dividend income for tax purposes.
Payment to mutual fund clients consisting of profits from the sale of stocks and bonds.
A distribution of net capital gains per-share from a mutual fund to its shareholders, as a result of the fund having sold investments at a net profit during the year. Mutual funds usually distribute these net gains, if any, on an annual basis in December to shareholders. Though funds may pay short-term capital gain distributions, the IRS requires funds to classify those distributions as ordinary dividends on Form 1099-DIV. Only net long-term capital gain distributions are reported on Form 1099-DIV as capital gains.
When the fund sells some of its assets, you receive capital gain distributions or a portion from the sale. This distribution is regarded as a capital gain, not as ordinary dividends such as the interest gained from a bank account. It is important to separate capital gain distributions from ordinary dividends because capital gains are taxed more favourably. See also "Ordinary Dividends."
An allocated amount paid to, or treated as paid to, a shareholder by a mutual fund, regulated investment company, or real estate investment trust from its net realized long-term capital gains. This amount is in addition to any ordinary dividend paid to the shareholder. You will receive a statement from the payer if this applies to you.
Payment of capital gains realized by a mutual fund to an investor who owns shares of that fund as of the market close on the Record Date.
Payments to mutual fund shareholders or profits realized on the sale of securities in the fund's portfolio. These amounts are usually distributed to shareholders.
Payments (usually annually) made to mutual fund shareholders of gains realized on the sale of securities in the mutual fund portfolio.
Payment to mutual fund shareholders from the profits of the sale of securities in the fund’s portfolio. Typically, distributions are made annually.
A distribution to shareholders of net capital gain realized by a fund from the sale of fund securities. Distribution amounts are reported to shareholders on Form 1099-DIV.