Herzfeld Credit Income Fund pays $0.17 distribution
Herzfeld Credit Income Fund, Inc. pays a $0.17 per share distribution, fully sourced from net investment income, with a payment date of July 31, 2026. The fund's NAV per share was $19.21 as of June 30, 2026, reflecting an annualized distribution rate of 10.62%.
*this image is generated using AI for illustrative purposes only.
Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) has announced a monthly distribution of $0.17 per share, fully derived from net investment income. The payment will be made on July 31, 2026, to shareholders of record as of July 17, 2026. This distribution represents the fund's ongoing commitment to generating high current income for stockholders through its focus on credit-related instruments, including collateralized loan obligations (CLOs). The ex-date for the distribution is also July 17, 2026.
The declaration was made on May 20, 2026. The following table outlines the key dates and amounts for the distribution:
| Event | Date |
|---|---|
| Declaration Date | May 20, 2026 |
| Ex-Date | July 17, 2026 |
| Record Date | July 17, 2026 |
| Payment Date | July 31, 2026 |
| Per Share Amount | $0.17 |
The breakdown of the current distribution indicates that 100% of the $0.17 per share comes from net investment income. There were no contributions from net realized short-term capital gains, net realized long-term capital gains, or return of capital. Similarly, the cumulative distributions declared for the fiscal year to date total $0.17 per share, also entirely sourced from net investment income.
Distribution Sources and Performance Metrics
The source composition of the distribution is detailed below:
| Source | Current Distribution ($) | % Breakdown | Cumulative FYTD Distribution ($) | % Breakdown FYTD |
|---|---|---|---|---|
| Net Investment Income | $0.17 | 100% | $0.17 | 100% |
| Net Realized Short-Term Capital Gains | $0.00 | 0% | $0.00 | 0% |
| Net Realized Long-Term Capital Gains | $0.00 | 0% | $0.00 | 0% |
| Return of Capital | $0.00 | 0% | $0.00 | 0% |
| Total | $0.17 | 100% | $0.17 | 100% |
As of June 30, 2026, the fund’s net asset value (NAV) per share was $19.21. The annualized current distribution rate expressed as a percentage of NAV stands at 10.62%. For the fiscal year through June 30, 2026, the cumulative total return in relation to NAV was -1.74%, while cumulative fiscal year distributions represented 38.40% of the NAV. The average annual total return for the five-year period ending June 30, 2026, was -7.88%.
Investment Strategy and Risks
Herzfeld Credit Income Fund, Inc., a non-diversified closed-end management investment company incorporated in Maryland, aims to maximize risk-adjusted total returns while generating high current income. Managed by Thomas J. Herzfeld Advisors, Inc., the fund primarily invests in equity and junior debt tranches of CLOs.
Investors are cautioned that no conclusions should be drawn about the fund’s investment performance based solely on the amount of distributions. Distributions are not guaranteed and may vary based on earnings, realized gains, and market conditions. Additionally, shares of closed-end funds often trade at a discount to NAV, and actual results may differ materially from forward-looking statements due to risks associated with CLO investments, market disruptions, and manager judgment.
How might the current macroeconomic interest rate environment impact the future stability of HERZ's 100% net investment income-derived distributions?
Given the fund's negative five-year average annual total return of -7.88%, what strategic adjustments is management considering to improve long-term capital preservation?
What are the potential implications for HERZ's NAV if the credit market experiences increased defaults within the collateralized loan obligations (CLOs) it holds?
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