First Trust Advisors, LP
Lisle, IL, June 26, 2006 -- First Trust Value Line(R) Dividend Fund (the "Fund") (FVD) announced the adoption of a policy to make regular monthly distributions of $0.08786 per share. The Fund has declared its first distribution under the new policy which will be payable on July 17, 2006 to shareholders of record on July 6, 2006, with an expected ex-dividend date of July 3, 2006. Based upon the Fund's net asset value of $16.22 and American Stock Exchange closing price of $14.30 on June 23, 2006, respectively, the Fund's July regular monthly distribution equates to an annualized distribution rate of 6.50% at NAV and an annualized distribution rate of 7.37% at market price.
The Fund's previous policy was to make regular quarterly distributions.
Distributions under the new policy are expected to be comprised of net investment income, realized short-term capital gains and/or, if necessary, non-taxable distributions (which generally are expected to represent unrealized capital appreciation). Net long-term capital gain distributions are expected to be made annually. The final determination of the source and tax characteristics of all distributions will be made after December 31 of each year and reported to shareholders early in the following year. There is no guarantee that the Fund will generate net realized capital gains or net unrealized capital appreciation in the future.
In addition, the Fund announced that it has adopted an open-market share repurchase program. Effective immediately, the Fund may purchase up to an aggregate of 4,860,000 shares in open-market transactions at the discretion of Fund management. The repurchase limit represents approximately 15% of shares outstanding.
The Fund is a closed-end fund designed to provide total return through a combination of current income and capital appreciation. The Fund seeks to accomplish this objective through a disciplined investment strategy derived from Value Line's(R) Safety(TM) Ranking System, which emphasizes its #1 and #2 stocks ranked for Safety(TM).
First Trust Advisors L.P. acts as the Fund's investment adviser and currently manages or supervises approximately $25 billion in assets.
View more information on First Trust Advisors, LP or other Closed-End Funds.
|
©1999-2008 Closed-End Fund Association, Inc. All Rights Reserved
 | | Powered by a SySys® data & content management system. Click here to learn more. |
|
|