Source Capital Announces Significant Deemed Distribution for 2025, Retaining Capital for Growth
SOR sits 25% above its 52-week low of $38.66 on light trading volume (0.3× avg).
Summary
Source Capital announced the tax treatment of its 2025 dividends and a significant deemed distribution of $2.51 per share, retaining capital for future growth and investment opportunities.
Key Events · Corporate Governance and Compliance · SOR
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Deemed Distribution Announced
The Fund declared a $2.50739554 per share deemed distribution for shareholders of record as of December 31, 2025.
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Capital Retention for Growth
The Board of Trustees opted for a deemed distribution to retain capital, enabling the Fund to pursue future investment opportunities and support continued growth.
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Tax Implications for Shareholders
Shareholders are deemed to have received a capital gain dividend, receive a 21% tax credit, and increase their adjusted tax basis in their shares.
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First Deemed Distribution Since 1989
This marks the first time the Fund has retained realized gains through a deemed distribution since 1989, indicating a strategic shift.
Analysis · SOR · Unknown
This 8-K details the U.S. federal income tax treatment of Source Capital's 2025 dividends and, more significantly, a $2.50739554 per share deemed distribution. The Board of Trustees elected to retain net capital gains, paying a 21% corporate tax, to enable the Fund to pursue future investment opportunities and support continued growth. Shareholders are deemed to have received a capital gain dividend, receive a tax credit, and increase their adjusted tax basis in their shares. This marks a notable shift in capital allocation strategy, as the Fund has not retained realized gains in this manner since 1989.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.6% of the 1645 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SOR was trading at $48.24 on NYSE in the Unknown sector, with a market capitalization of approximately $397.7M. The 52-week trading range was $38.66 to $50.41. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.