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The Adams Express Company Declares Dividend and Announces First Quarter Performance
The Adams Express Company
BALTIMORE, April 12, 2012 /PRNewswire via COMTEX/ -- The Board of Directors of The Adams Express Company ADX -0.37% today declared an interim dividend of $0.05 per share, payable June 1, 2012, to stockholders of record May 14, 2012. This dividend represents the second payment this year towards the Company's commitment to pay out to stockholders an amount that will result in an annual distribution rate of at least 6% for the year.*
*The annual distribution rate is the total income dividends and capital gain distributions during the year divided by the average month-end market price of the Company's Common Stock on the NYSE for the twelve months ended October 31.
The Company also announced the Fund's performance for the first quarter.
First Quarter Returns
For the three months ended March 31st, the total return on Adams Express' net asset value, with dividends and capital gains reinvested, was12.5%. Comparable figures for the Standard & Poor's 500 Index (S&P 500) and the Lipper Large-Cap Core Mutual Fund Average (Lipper Peer Group) were 12.6% and 12.4%, respectively. The total return on Adams Express' market value was 14.4%. The net capital gain realized by Adams Express on its investments for the three months was $0.07 per share.
For the twelve months ended March 31st, the total return on Adams Express' net asset value, with dividends and capital gains reinvested, was 4.9%. Comparable figures for the S&P 500 and the Lipper Peer Group were 8.5% and 6.0%, respectively. The total return on Adams Express' market value was 3.0%.
Adams Express' net asset value at March 31, 2012, is compared with the year earlier in the following table:
Net Asset Value
Net assets $1,176,974,864 $1,167,420,989
Shares outstanding 91,108,554 88,920,291
Net assets per share $12.92 $13.13
During the first quarter, the Company added ten new names to its portfolio with the purchases of shares of Affiliated Managers Group (asset management), AT&T Corp., Diageo plc ADR (beverages), Express Scripts Inc. (health care), Kansas City Southern (railroad), McKesson Corp. (health care), MetLife Inc., NiSource Inc. (utility), Terex Corp. (industrial machinery), and Verizon Communications Inc. The Company added to its existing holdings in AXIS Capital Holdings, CF Industries, Emerson Electric, General Electric, Honeywell, Schlumberger, South Jersey Industries, and Wisconsin Energy. The Company eliminated one name from the portfolio with the sale of its shares of Abbott Laboratories. Holdings were reduced in ADTRAN, Apple, Bank of America, BorgWarner, Broadcom, Bunge, Caterpillar, Celgene, Chevron, F5 Networks, Freeport-McMoRan, Hewlett-Packard, MDU Resources, Morgan Stanley, NetApp, Norfolk Southern, Northeast Utilities, Oracle, Peabody Energy, Potash Corporation, Prudential, T. Rowe Price, Teva Pharmaceutical, United Technologies, and Zimmer.
The First Quarter Report to Stockholders is expected to be released on or about April 20, 2012.
The Adams Express Company is a Baltimore-based closed-end investment company. It is traded on the New York Stock Exchange under the symbol ADX.
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