Spillover Income

Spillover income is taxable income a RIC retains for possible distribution in a later period, subject to applicable tax rules and issuer disclosure. It is not the same as unrestricted cash or a promise of future dividends.

Why this matters to income investors

Spillover income may give a RIC flexibility in dividend timing, but the balance and available cash must be verified before treating it as support for future payments.

How to use spillover income in your research

Find the company’s definition and reconciliation in the latest filing. Compare the amount with cash available, past periods, and the included dividends; a reported balance or gain alone is not a promise of a future payment.

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