On Monday the stock price of the Herzfeld Caribbean Basin Fund dropped by more than $1.20 per share or about 12% yesterday but the price drop was due to the stock going X dividend of $1.28 per share so the drop was in line with the dividend payment to shareholders of $1.28.
The press release announcing the dividend is seen below.
The Herzfeld Caribbean Basin Fund, Inc. Declares $1.28 per
2007-11-26 08:36 (New York)
The Herzfeld Caribbean Basin Fund, Inc. Declares $1.28 per Share Year-End Distribution
MIAMI, FL—(MARKET WIRE)—11/26/07— The Board of Directors of The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) declared a year-end distribution of $1.28 per share, consisting of $1.05 per share from net long-term capital gains, and $0.23 per share from net investment income, payable on January 9, 2008 to stockholders of record December 12, 2007. The distribution is taxable to stockholders for the calendar year 2007.
The distribution will be payable in Fund shares unless the stockholder elects to receive cash. Currently the market price per share of the common stock is trading at a discount to NAV but has at times traded at a premium to NAV. If the market price per share of common stock, on the payment date, is equal to or exceeds the NAV
(“trading at a premium”), the distribution will be payable to shareholders in newly issued Shares valued at the greater of (1) NAV or (2) 95% of the then-current market price of the Shares. If the NAV on the payment date exceeds the market price of the Shares at the time (“trading at a discount”), the distribution per share will be
payable to shareholders in Shares valued at market price.
Including this distribution, The Herzfeld Caribbean Basin Fund, Inc. will have paid a total of $3.966 per share in distributions since the Fund’s inception in 1994.
The Herzfeld Caribbean Basin Fund, Inc. is a closed-end fund managed by HERZFELD/CUBA, a division of Thomas J. Herzfeld Advisors, Inc. (based in Miami). The Fund seeks long-term capital appreciation. To achieve its objective the Fund invests in issuers that are likely, in the Advisor’s view, to benefit from economic, political, structural and technological developments in the countries in the Caribbean Basin, which the Fund considers to consist of Cuba, Jamaica, Trinidad and Tobago, the Bahamas, the Dominican Republic, Barbados, Aruba, Haiti, the Netherlands Antilles, the Commonwealth of Puerto Rico, Mexico, Honduras, Guatemala, Belize, Costa Rica, Panama, Colombia, Venezuela and the United States.
Thomas J. Herzfeld Advisors, Inc. specializes in the field of closed-end funds. Information about the advisor and the Fund can be found at http://www.herzfeld.com
For further information contact:
Cecilia L. Gondor
Thomas J. Herzfeld Advisors, Inc.
PO Box 161465
Miami, FL 33116
-0- Nov/26/2007 13:36 GMT