Source Capital Declares June, July, and August 2025 Distribution on Common Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 29 2025
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Should l Buy SOR?
Source: Newsfilter
Monthly Distribution Rates: Source Capital's Board of Trustees has approved maintaining a regular monthly distribution rate of $0.2083 per common share for June, July, and August 2025.
Investment Objectives and Risks: The Fund aims for maximum total return through capital appreciation and investment income, investing in longer duration assets and illiquid securities, while highlighting the inherent risks associated with such investments.
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Analyst Views on SOR
About SOR
Source Capital, Inc. (the Fund) is a diversified, closed-end management investment company. The investment objective of the Fund is to seek maximum total return for common shareholders from both capital appreciation and investment income to the extent consistent with protection of invested capital. The Fund's investments include semiconductor devices; industrial distribution and rental; cement and aggregates; Internet media; cable and satellite; application software; electrical components; chemicals; insurance brokers; diversified banks; base metals; banks; investment companies; food services; integrated utilities; railroad rolling stock, apparel, footwear and accessory design; e-commerce discretionary, hotels; restaurants and leisure; commercial and residential building equipment and systems; automotive retailers; real estate owners and developers; entertainment content; energy; health care services and others. The Fund's investment adviser is First Pacific Advisors, LP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Pacific Advisors' Q1 2026 Investment Moves
- New Additions: In Q1 2026, First Pacific Advisors added 27 stocks, with Baxter International Inc (BAX) being the largest addition at 6,700,925 shares, representing 1.61% of the portfolio and valued at $112.58 million, indicating strong confidence in the healthcare sector.
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- Position Reductions: The firm reduced positions in 23 stocks, with Kinder Morgan Inc (KMI) seeing a significant reduction of 2,743,789 shares, a 67.31% decrease impacting the portfolio by -1.01%, suggesting a reassessment of the energy sector's prospects.
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- Distribution Maintenance: The Board of Trustees of Source Capital (NYSE:SOR) has approved maintaining the monthly distribution rate at $0.2083 per common share for June, July, and August 2026, ensuring a stable cash flow for investors in the upcoming months.
- Investment Objective: The Fund aims to achieve maximum total return through capital appreciation and investment income, targeting long-term investors, particularly those willing to hold investments for five years or more, reflecting its focus on stable income generation.
- Risk Considerations: Distributions may include ordinary income, net capital gains, and/or returns of capital, necessitating careful consideration of the Fund's investment objectives, risks, and expenses by investors to avoid confusing distributions with yield.
- Market Volatility Impact: The Fund's distribution rate may be influenced by various factors including market returns and Fund performance, prompting investors to monitor market changes that could affect future distributions to make informed investment decisions.
See More
FPA Nominated for 2026 Morningstar Exemplary Stewardship Award
- Nomination Honor: FPA has been nominated for the 2026 Morningstar Exemplary Stewardship Award due to its unwavering focus on investor interests, highlighting its excellence and recognition in the investment management field.
- Investor First: FPA's founding partner, Steven Romick, emphasizes that the firm's culture is centered around serving investor interests, committed to delivering superior risk-adjusted returns while ensuring alignment with client interests.
- Industry Competition: Competing for this award alongside industry giants like PIMCO and Vanguard underscores FPA's significant position and influence in the asset management sector, further solidifying its competitive advantage in the market.
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- Dividend Distribution Details: Source Capital announced a 2025 dividend of $0.208300 per share, covering ordinary income and long-term capital gains, which is expected to directly impact shareholders' tax filings and enhance investment returns.
- Taxable Distribution Explanation: The deemed distribution of $2.50739554 per share will take effect for shareholders of record as of December 31, 2025, providing shareholders with a corresponding tax credit that enhances their tax basis and promotes future investment opportunities.
- Tax Treatment Transparency: The fund will send a 1099 form to all shareholders detailing taxable amounts, ensuring accurate tax reporting and reducing tax risks while enhancing compliance.
- Investment Strategy Adjustment: The Board's decision to declare a deemed distribution instead of a cash dividend aims to retain capital to support the fund's continued growth and future investment opportunities, reflecting a commitment to long-term investment strategies.
See More
Source Capital (SOR) Maintains Monthly Distribution Rate of $0.2083 for March-May 2026
- Distribution Maintenance: The Board of Trustees of Source Capital (NYSE: SOR) has approved maintaining a monthly distribution rate of $0.2083 per share for March, April, and May 2026, reflecting the company's commitment to providing stable income for long-term investors.
- Record and Payment Dates: The record date for the March distribution is set for March 13, 2026, with payment on March 31, followed by April's and May's record and payment dates of April 15, April 30, and May 14, May 29 respectively, ensuring timely returns for investors.
- Investment Objective: Source Capital aims to maximize total returns for shareholders through capital appreciation and investment income, indicating a strategic focus on long-term investment returns suitable for investors with a horizon of five years or more.
- Risk Advisory: While maintaining the distribution rate, investors should be aware that various factors, including market fluctuations and fund performance, may impact future distribution rates, underscoring the inherent risks and uncertainties in investment decisions.
See More
Source Capital (SOR) Updates 2025 Discount Management Program, No Tender Offer Planned
- Discount Management Program: Source Capital's average discount to NAV was below 10% during the 2025 measurement period, resulting in no tender offer for 2025, indicating the fund's stability and market confidence.
- Future Tender Offers: The Board approved contingent tender offers for 2026 and 2027, allowing for a buyback of 10% of shares if the average discount exceeds 10% in 2027, ensuring potential benefits for investors.
- Private Credit Investments: As of December 31, 2025, approximately 21.7% of NAV was allocated to private credit, reflecting the fund's ongoing efforts to diversify its portfolio and enhance long-term returns.
- Investor Call Announcement: The fund will host an investor call on February 26, 2026, providing an opportunity for investor engagement and enhancing transparency and investor relations.
See More
First Pacific Advisors' Q1 2026 Investment Moves
- New Additions: In Q1 2026, First Pacific Advisors added 27 stocks, with Baxter International Inc (BAX) being the largest addition at 6,700,925 shares, representing 1.61% of the portfolio and valued at $112.58 million, indicating strong confidence in the healthcare sector.
- Significant Increases: The firm increased stakes in 22 stocks, notably Liberty Broadband Corp (LBRDK), with an additional 1,973,262 shares, a 73.92% increase impacting the portfolio by 1.42% and valued at $233.52 million, reflecting optimism in the communications industry.
- Complete Exits: First Pacific Advisors fully exited 5 holdings this quarter, including Charter Communications Inc (CHTR), selling 461,525 shares, resulting in a -1.29% impact on the portfolio, indicating a cautious outlook on this stock.
- Position Reductions: The firm reduced positions in 23 stocks, with Kinder Morgan Inc (KMI) seeing a significant reduction of 2,743,789 shares, a 67.31% decrease impacting the portfolio by -1.01%, suggesting a reassessment of the energy sector's prospects.
See More
Source Capital Maintains 2026 Distribution Rates
- Distribution Maintenance: The Board of Trustees of Source Capital (NYSE:SOR) has approved maintaining the monthly distribution rate at $0.2083 per common share for June, July, and August 2026, ensuring a stable cash flow for investors in the upcoming months.
- Investment Objective: The Fund aims to achieve maximum total return through capital appreciation and investment income, targeting long-term investors, particularly those willing to hold investments for five years or more, reflecting its focus on stable income generation.
- Risk Considerations: Distributions may include ordinary income, net capital gains, and/or returns of capital, necessitating careful consideration of the Fund's investment objectives, risks, and expenses by investors to avoid confusing distributions with yield.
- Market Volatility Impact: The Fund's distribution rate may be influenced by various factors including market returns and Fund performance, prompting investors to monitor market changes that could affect future distributions to make informed investment decisions.
See More
FPA Nominated for 2026 Morningstar Exemplary Stewardship Award
- Nomination Honor: FPA has been nominated for the 2026 Morningstar Exemplary Stewardship Award due to its unwavering focus on investor interests, highlighting its excellence and recognition in the investment management field.
- Investor First: FPA's founding partner, Steven Romick, emphasizes that the firm's culture is centered around serving investor interests, committed to delivering superior risk-adjusted returns while ensuring alignment with client interests.
- Industry Competition: Competing for this award alongside industry giants like PIMCO and Vanguard underscores FPA's significant position and influence in the asset management sector, further solidifying its competitive advantage in the market.
- Capacity Management Strategy: FPA's two largest funds, FPA Crescent and FPA New Income, have historically soft-closed and are currently not accepting new institutional separate account relationships due to capacity considerations, demonstrating a strong commitment to prioritizing investor returns and effective management capabilities.
See More
Source Capital Announces 2025 Dividend Tax Treatment
- Dividend Distribution Details: Source Capital announced a 2025 dividend of $0.208300 per share, covering ordinary income and long-term capital gains, which is expected to directly impact shareholders' tax filings and enhance investment returns.
- Taxable Distribution Explanation: The deemed distribution of $2.50739554 per share will take effect for shareholders of record as of December 31, 2025, providing shareholders with a corresponding tax credit that enhances their tax basis and promotes future investment opportunities.
- Tax Treatment Transparency: The fund will send a 1099 form to all shareholders detailing taxable amounts, ensuring accurate tax reporting and reducing tax risks while enhancing compliance.
- Investment Strategy Adjustment: The Board's decision to declare a deemed distribution instead of a cash dividend aims to retain capital to support the fund's continued growth and future investment opportunities, reflecting a commitment to long-term investment strategies.
See More
Source Capital (SOR) Maintains Monthly Distribution Rate of $0.2083 for March-May 2026
- Distribution Maintenance: The Board of Trustees of Source Capital (NYSE: SOR) has approved maintaining a monthly distribution rate of $0.2083 per share for March, April, and May 2026, reflecting the company's commitment to providing stable income for long-term investors.
- Record and Payment Dates: The record date for the March distribution is set for March 13, 2026, with payment on March 31, followed by April's and May's record and payment dates of April 15, April 30, and May 14, May 29 respectively, ensuring timely returns for investors.
- Investment Objective: Source Capital aims to maximize total returns for shareholders through capital appreciation and investment income, indicating a strategic focus on long-term investment returns suitable for investors with a horizon of five years or more.
- Risk Advisory: While maintaining the distribution rate, investors should be aware that various factors, including market fluctuations and fund performance, may impact future distribution rates, underscoring the inherent risks and uncertainties in investment decisions.
See More
Source Capital (SOR) Updates 2025 Discount Management Program, No Tender Offer Planned
- Discount Management Program: Source Capital's average discount to NAV was below 10% during the 2025 measurement period, resulting in no tender offer for 2025, indicating the fund's stability and market confidence.
- Future Tender Offers: The Board approved contingent tender offers for 2026 and 2027, allowing for a buyback of 10% of shares if the average discount exceeds 10% in 2027, ensuring potential benefits for investors.
- Private Credit Investments: As of December 31, 2025, approximately 21.7% of NAV was allocated to private credit, reflecting the fund's ongoing efforts to diversify its portfolio and enhance long-term returns.
- Investor Call Announcement: The fund will host an investor call on February 26, 2026, providing an opportunity for investor engagement and enhancing transparency and investor relations.
See More
