This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Adams Express Company Commits To Annual Distribution Of 6%

BALTIMORE, Sept. 8, 2011 /PRNewswire-FirstCall/ -- The Board of Directors of The Adams Express Company (NYSE: ADX) announced today that, effective immediately, the Company is committing to distribute annually to its stockholders an amount equal to 6% of the average month-end market price on the NYSE of the Company's Common Stock for the trailing 12 months, calculated as of October 31. For comparison, the Company paid total distributions at an annual distribution rate of 5.2% in 2009 and at an annual distribution rate of 5.1% in 2010.

"This commitment to our stockholders reflects our long history of annually providing attractive distributions of dividend income and capital gains and adds predictability to the amount that our stockholders will be receiving," said Douglas Ober, Chairman and CEO.  "We will continue to manage the portfolio for solid long-term returns while providing a commitment to a cash payout regardless of market conditions. This should be appealing to investors in today's volatile market and low interest rate environment."

The Company will be making its distributions pursuant to this commitment using the same pay-out schedule that it has used for many years. Accordingly, the Company will pay interim quarterly distributions of earned investment income on March 1, June 1, and September 1 (currently the Company is paying interim quarterly distributions of $0.05 each). Then, for its annual year-end distribution, the Board of Directors will review the amount of income, capital gain, or capital available and the average month-end market price on the NYSE of the Company's Common Stock for the trailing 12 months (as of October 31), and will declare a year-end distribution that brings the amount of distributions paid out for the full year equal to 6% of the average market price. In circumstances in which the net investment income and realized capital gains exceed 6%, distributions paid to stockholders may be greater than 6%.

Portions of the distributions may be treated as long-term capital gain and qualified dividend income for individuals, each subject to the maximum federal income tax rate, which is currently 15% in taxable accounts for individuals. If, in a given year, the Company does not generate sufficient earnings from net investment income and net realized capital gains to meet the 6% distribution amount commitment, then the amount distributed in excess of the Company's net investment income and net realized capital gains would be deemed a return of capital. Since this would be considered a return of a portion of a stockholder's original investment, it is generally not taxable under federal tax regulations and is treated as a reduction in the stockholder's cost basis. In certain circumstances, however, some or all of the return of capital distributed by the Company may be taxable. Stockholders should, in any event, consult their tax advisers as to the tax treatment for these distributions.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs