Distribution Rate

Distribution rate is a distribution rate expresses a fund’s annualized distributions as a percentage of a stated value, commonly market price or net asset value.

A simple example

Annualized distributions of $1.20 divided by a $15 market price produce an 8% market-price distribution rate.

Why this matters to income investors

The rate describes payments, not investment return, and the distribution may include income, gains, or return of capital.

How to use distribution rate in your research

Identify the denominator, calculation date, included payments, and tax character. Do not compare the rate directly with total return.

This material is general education and information, not individualized investment, tax, or legal advice.