Neuberger Berman Dividend Advantage Fund Inc. Announces Quarterly Distribution and Reduction in Distribution Rate
13 May 2009 - 9:49AM
Business Wire
The Board of Directors of Neuberger Berman Dividend Advantage
Fund Inc. (AMEX: NDD) (the �Fund� or �NDD�) has declared a
quarterly distribution of $0.065 per share, which represents a
$0.045 reduction per share. The $0.065 per share quarterly
distribution rate is equivalent to 3.6011% of the Fund�s market
closing price per share and 3.3248% of the Fund�s net asset value
per share as of May 11, 2009, on an annualized basis. The quarterly
distribution announced today is payable on June 15, 2009, has a
record date of May 26, 2009 and an ex-date of May 21, 2009.
In determining that a reduction in the distribution rate was
appropriate, the Board considered, among other things, recent and
current market conditions, reduced levels of investment income
earned by the Fund and the effects of a reduction in the Fund�s
leverage. Specifically, within the universe of real estate
investment trusts (REITs), a sizable number of REITs have announced
reductions in their common share dividends and a somewhat smaller
number have suspended preferred share dividends. This trend has
impacted REITs in the Fund�s portfolio and has resulted in a
reduction in the level of income earned and anticipated to be
earned by the Fund. In addition, due in part to declines in the
prices of REIT securities held by the Fund and the asset coverage
requirements of the Investment Company Act of 1940, as amended, the
Fund has reduced the absolute amount of its leverage, which has
further reduced the Fund�s income generating capacity.
Under its level distribution policy, the Fund endeavors to
establish a distribution rate that its Board believes is
sustainable for a reasonable time period, subject to market
conditions. There is no assurance that the Fund will always be able
to pay a distribution of any particular size, or that a
distribution will consist of only net investment income. The Fund�s
continuing ability to maintain a stable distribution will depend on
a number of factors, including the stability of income received
from its investments, availability of capital gains, distributions
paid on preferred stock and interest paid on notes] and the level
of Fund other expenses.
Due to an effort to maintain a stable distribution amount, the
distributions announced today, as well as future distributions, may
consist of net investment income, realized capital gains and return
of capital.
In compliance with Section 19 of the Investment Company Act of
1940, as amended, a notice would be provided for any distribution
that does not consist solely of net investment income. The notice
would be for informational purposes, and would disclose, among
other things, estimated portions of the distribution, if any,
consisting of net investment income, capital gains and return of
capital.
Neuberger Berman Management LLC, the Fund�s investment manager,
is a subsidiary of Neuberger Berman Holdings LLC, an investment
advisory company serving individuals, families, and taxable and
non-taxable institutions with a broad range of investment products,
services and strategies. Neuberger Berman engages in wealth
management services including private asset management, mutual
funds, institutional management and alternative investments. For
further information about Neuberger Berman please visit
www.nb.com.
Statements made in this release that look forward in time
involve risks and uncertainties and are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such risks and uncertainties include, without limitation,
the adverse effect from a decline in the securities markets or a
decline in the Fund�s performance, a general downturn in the
economy, competition from other closed-end investment companies,
changes in government policy or regulation, inability of the Fund�s
investment adviser to attract or retain key employees, inability of
the Fund to implement its investment strategy, inability of the
Fund to manage rapid expansion and unforeseen costs and other
effects related to legal proceedings or investigations of
governmental and self-regulatory organizations.
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