COMMITS TO ANNUAL 6% MINIMUM PAYOUT
BALTIMORE, MD, September 13, 2012 -- Petroleum & Resources Corporation (NYSE:PEO), a Baltimore-based energy and natural resources investment company with a 78-year history of paying dividends, announced today its commitment to an annual 6% minimum distribution rate:
•The Fund will distribute to its shareholders annually an amount equal to at least 6% of the average month-end market price of the Corporation’
•This compares to the 2.04% dividend yield of the stocks in the S&P 500 Energy Index.
•These distributions may be particularly attractive to investors seeking retirement income.
“At a time when income investors are finding few alternatives to persistently low interest rates, a commitment to an annual 6% minimum distribution rate offers investors dependable distributions in an otherwise volatile market,” said Douglas G. Ober, Chairman and CEO of Petroleum & Resources Corporation. “We will continue to manage our diversified portfolio of energy and natural resources stocks for solid long-term returns while committing to a minimum 6% distribution rate regardless of market conditions.”
The time frame that will be used for determining the average market price will be the month-end market prices over the trailing twelve months, calculated as of October 31. For comparison, the Corporation paid total distributions at an annual distribution rate of 5.5 % in 2010 and 7.1% in 2011. The announcement was approved by the Corporation’
The Corporation will be using the same pay-out schedule that it has used for many years, which means paying small quarterly income distributions until the 4th quarter, when much of the distribution is paid. Accordingly, the Corporation will pay interim quarterly distributions of earned investment income on March 1, June 1, and September 1 (currently the Corporation is paying interim quarterly distributions of $0.10 each). For its annual year-end distribution, the Board of Directors will review the amount of income, capital gain, capital available, and the average month-end market price on the NYSE of the Corporation’
Portions of the distributions may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum applicable federal income tax rate, which is currently 15% in taxable accounts for individuals. If, in a given year, the Corporation does not generate sufficient earnings from net investment income and net realized capital gains to meet the 6% minimum distribution amount, then the amount distributed in excess of the Corporation’
The Board of Directors will continue to monitor the Corporation’
For more information about the distribution, including frequently asked questions, go to www.peteres.com/
About Petroleum & Resources
Petroleum & Resources Corporation is a publicly-traded equity investment fund for investors who seek broadly diversified exposure to the energy and natural resources sectors in a conservatively-
The Corporation has been trading on the New York Stock Exchange since January 1929.
The portfolio: Petroleum & Resources invests in a diversified group of investments, including multi-national companies, as well as exploration, equipment, and service suppliers – all associated with petroleum and natural gas. In addition, the Fund invests in a variety of basic materials, including coal, precious and industrial metals, aggregates, and chemicals, as these also have attractive investment characteristics. Top holdings (as of 6/30/12) include Exxon Mobil Corp.; Chevron Corp.; Schlumberger Ltd.; Occidental Petroleum Corp.; Anadarko Petroleum Corp.; Dow Chemical Co.; Freeport-McMoRan Copper & Gold Inc.; Praxair Inc., CF Industries Holdings, Inc.; and Noble Energy, Inc.
For further information, contact:
Lawrence L. Hooper, Jr., Vice President, General Counsel & Secretary
at (410) 752-5900 or (800) 638-2479