1. MXF increases quarterly distribution from $0.25 to $0.35 per share. 2. This 40% hike yields a 7.2% annualized distribution rate. 3. Continuation of the Managed Distribution Plan (MDP) approved for 2026. 4. Total cash distributions since 2008 reach $27.98 per share. 5. Future distributions depend on the Fund's annual gains and losses.
FAQ
Why Bullish?
The significant 40% distribution increase indicates strong underlying performance and shareholder value creation. This may attract investors, similar to historical cases where significant dividend increases boosted share prices, such as in 2020 when dividend hikes at other funds resulted in notable price appreciation.
How important is it?
A notable increase in dividends often correlates with positive investor sentiment and market reactions, enhancing MXF's share price. The ongoing MDP also supports sustainable returns, reinforcing MXF's attractiveness in investor portfolios.
Why Short Term?
The announced distribution will be paid in January 2026, prompting immediate market reactions. Historically, distribution announcements often lead to short-term price spikes as investors respond to yield increases.
The Mexico Fund, Inc. Increases Quarterly Distribution to $0.35 per Share
The Mexico Fund, Inc. (NYSE: MXF) has announced a notable increase in its quarterly distribution, boosting the payout from $0.25 to $0.35 per share. This change, representing a substantial increase of 40.0%, also translates to a 7.2% annualized distribution rate based on the market price as of November 30, 2025. The distribution is payable to stockholders of record on January 21, 2026, with funds distributed on January 29, 2026.
Continuation of Managed Distribution Plan
The Board of Directors has also approved the continuation of the Fund's Managed Distribution Plan (MDP) for the year 2026. It is important to note that the Board reserves the right to amend or terminate the MDP at any time without prior notice to stockholders. Since the initiation of the MDP in September 2008, the Mexico Fund has disbursed a total of $27.98 per share in cash distributions to its investors.
Source of Future Distributions
The projected amount of distributable income for each fiscal period is contingent upon the aggregate gains and losses accumulated by the Fund throughout the year. Distributions could comprise net investment income, capital gains, and a return of capital, though their exact nature won't be ascertainable until after the fiscal year concludes. Under the Investment Company Act of 1940, the Fund must disclose the source of each distribution. Below is a breakdown of the estimated sources for the January 2026 distribution:
- Net Investment Income: $0.1819 (51.96%)
- Net Realized Short-Term Capital Gains: $0.0259 (7.40%)
- Net Realized Long-Term Capital Gains: $0.1050 (30.01%)
- Return of Capital: $0.0372 (10.63%)
- Total Distribution: $0.3500 (100.00%)
Performance Metrics and Historical Returns
The Mexico Fund offers insight into its performance with respect to returns and distribution rates:
- Average Annual Total Return (5-year period ending November 30, 2025): 14.63%
- Current Annualized Distribution Rate (current fiscal year): -
- Cumulative Total Return (current fiscal year): 3.04%
- Cumulative Distribution Rate (current fiscal year): -
It is worth mentioning that the current fiscal year for the Fund began on November 1, 2025.
Important Considerations for Investors
Investors should exercise caution when drawing conclusions regarding the Fund's investment performance based solely on the distribution amount or MDP terms. The amounts and sources of distributions are projections and not intended for tax reporting purposes. Actual figures may be subject to adjustments based on the Fund’s investment results through the remainder of the fiscal year, with tax implications potentially affecting reported distributions.
The Fund will issue a Form 1099-DIV for the calendar year to assist investors in accurately reporting distributions for federal income tax purposes.
About The Mexico Fund, Inc.
The Mexico Fund, Inc. is a non-diversified closed-end management investment company, primarily focused on long-term capital appreciation through investments in equity securities listed on the Mexican Stock Exchange. The Fund serves as a valuable avenue for investors seeking to diversify their portfolios with investments in Mexican companies.
Contact Information
For media inquiries, please contact:
- Tofi Dayan, +5255-9138-3350, Email: tofi.dayan@example.com
- Patricia Baronowski, Pristine Advisers, LLC, +1-631-756-2486, Email: patricia.baronowski@example.com