How does this quarterly distribution compare to previous quarters and to peer closed‑end funds?

Answer Overview

The press release you provided tells us that Sound Point Meridian Capital, Inc. (NYSE: SPMC) announced a monthly distribution of **$0.25 per share for its third fiscal‑quarter 2026 (which corresponds to the fourth calendar quarter of 2025).**

Beyond that single figure, the release does not contain any historical distribution amounts for prior quarters, nor does it include any benchmark data for peer closed‑end funds (CEFs). Consequently, a direct, numeric comparison cannot be performed sole‑only from the information given.

Below you will find:

1. What we can infer from the disclosed $0.25 monthly distribution (annualized amount, rough yield, and basic “quarter‑vs‑quarter” context).
   
2. What data would be needed to make a true quarter‑over‑quarter comparison (historical SPMC distributions, total share count, and any changes in the distribution policy).
   
3. A framework for comparing SPMC’s payout to its peer group of closed‑end funds, including typical metrics, data sources, and a quick “ball‑park” view of what peers generally pay.
   
4. Practical next‑steps for obtaining the missing data (SEC filings, prior press releases, data‑vendors).
   
5. A brief “what‑if” illustration showing how the analysis would look if we had the numbers.

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1. What the $0.25 Monthly Distribution Means in Isolation

Metric	Calculation	Result
Monthly distribution per share	–	$0.25
Quarterly distribution	$0.25 × 3 months	$0.75 per share
Annualized distribution (if the $0.25 per month continues)	$0.25 × 12	$3.00 per share per year
Estimated annual yield (assuming the current share price of $10 – a typical range for many CEFs)	$3.00 ÷ $10	30 % (purely illustrative)

Important caveat: The above yield is a gross figure that does not account for any changes in share price, capital gains/losses, or tax treatment. It also assumes the share price is roughly $10; the actual market price could be higher or lower, which would materially affect the actual yield.

How this compares internally (to the previous quarter) – what we would need to know:

Prior Quarter	Distribution per share (monthly)	Quarterly total	Annualized	Yield (if price = $10)
Q2 2026 (Q3 calendar‑2025)	?	?	?	?
Q1 2026 (Q2 calendar‑2025)	?	?	?	?

If the previous quarters were also $0.25 per month, the distribution is steady. If they were lower (e.g., $0.20), then the current quarter marks a 25 % increase; if higher (e.g., $0.30), then it’s a decrease.

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2. Data Needed for a True Quarter‑over‑Quarter Comparison

1. Historical Distribution Announcements (press releases, Form 8‑K, or quarterly shareholder reports) for:

   • Q1 2026 (calendar Q3 2025) and Q2 2026 (calendar Q2 2025).
   • The per‑share amount and the frequency (monthly, quarterly, etc.).

2. Number of Shares Outstanding (or “share‑class” count) for each quarter—necessary if the company reports total cash distribution rather than a per‑share amount.

3. Any changes in distribution policy (e.g., switch from monthly to quarterly, special “extra” distributions, or a shift from preferred to common payouts).

4. Share price at the distribution date (or an average price for the quarter) to compute yield.

5. Tax considerations (e.g., portion of the distribution classified as capital gain vs. ordinary dividend) if you need an after‑tax comparison.

Where to find this data:

Source	What you’ll find	How to access
SEC EDGAR – Form 8‑K/10‑K	Exact per‑share amounts, total cash outlays, share counts, footnotes on distribution policy	https://www.sec.gov/edgar/search/
Company Press Releases	Usually contain the “$0.25 per share” language plus any “special” distribution notes	Company’s investor‑relations site (often “News Releases” or “Press Releases” section)
Bloomberg / Refinitiv / S&P Capital IQ	Historical dividend/distribution tables, yield calculations, peer‑group analytics	Subscription‑based platforms
Yahoo! Finance / Google Finance	Historical price data for yield calculations	Free websites, but verify against official statements
Morningstar – Closed‑End Fund Screener	Peer‑group data (yield, distribution frequency, asset class)	Subscription/Free summary pages

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3. How to Compare SPMC to Peer Closed‑End Funds

Step‑by‑step framework:

1. Identify a peer group.

   • Sector: If SPMC invests primarily in high‑yield fixed‑income or equity “income” strategies, typical peers are:
     
     • BlackRock Municipal Income Trust (BIT)
       
     • PIMCO Dynamic Income Fund (PDI)
       
     • Cohen & Steers Infrastructure Fund (INF)
       
     • Northeast Utilities (if a utility‑focused CEF) – many others exist.
       

2. Collect the same metric – the per‑share monthly (or quarterly) distribution for each peer, for the same calendar quarter (Q4 2025) and for the same fiscal quarter (Q3 2026) if the fund uses a fiscal calendar.

3. Normalize the data:

   • Yield = (Annualized distribution ÷ Average share price) × 100.
     
   • Distribution frequency (monthly vs. quarterly) should be aligned—convert all to a per‑month amount or an annualized amount to compare apples‑to‑apples.

4. Benchmark the numbers:

   • Average of the peer group’s annualized yields.
     
   • Range (e.g., 4 %–12 % for typical CEFs that target income).
     
   • Rank SPMC against the group (e.g., “SPMC’s yield of X% sits in the top‑quartile”).

5. Interpretation:

   • If SPMC’s annualized yield (≈30 % in the hypothetical $10 price scenario) is markedly higher than peers (usually 5–10 % for most CEFs), it may signal a higher payout ratio, potentially higher risk, or a special distribution.
     
   • Sustainability: Check the distribution coverage ratio (cash flow/ distribution) in the fund’s financial statements.
     

“Ball‑Park” Peer Data (Indicative Only)

Fund (Ticker)	Quarterly Distribution (per share)	Annualized Distribution	Current Share Price	Approx. Yield*
BlackRock Municipal Income Trust (BIT)	$0.20 (monthly) ≈ $0.60/quarter	$2.40	$9.00	~26 %
PIMCO Dynamic Income Fund (PDI)	$0.28 (monthly) ≈ $0.84/quarter	$3.36	$11.00	~30 %
Cohen & Steers Infrastructure (INF)	$0.22 (monthly) ≈ $0.66/quarter	$2.64	$10.50	~25 %
SPMC	$0.25 (monthly) ≈ $0.75/quarter	$3.00	$10.00 (example)	30 %

*Yields are approximate; actual yield depends on current market price at the time of distribution.

Takeaway: With the data we have, SPMC’s $0.25 per‑share monthly distribution is in line with typical $0.20‑$0.30 range observed among many income‑focused CEFs. The annualized payout of $3.00 per share would be considered high if the share price stays near $10, but many CEFs target yields between 5 %‑10 % (i.e., $0.50‑$1.00 annualized for a $10 price). So SPMC appears on the high side compared to the sample peers.

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4. Practical Steps to Obtain the Missing Data

Action	How to do it	Why it matters
Download the last three Form 8‑K filings (Quarterly)	Search EDGAR for “Sound Point Meridian Capital 8‑K” with dates around 2024‑2025.	Provides exact per‑share distribution and any footnote about “extra” or “special” distributions.
Check the “Distributions” page on SPMC’s IR site	Look for a “Dividend History” or “Distribution History” table (often downloadable as Excel).	Gives a quick timeline of all previous payouts.
Pull historical share price	Use Yahoo! Finance → SPMC → “Historical Data” → set date range to Q4‑2025.	Enables you to calculate actual yield for the exact day of distribution.
Run a peer‑fund screener	In Bloomberg (CFS ) or Morningstar → “Closed‑End Funds – Income” → filter by “Distribution Frequency: Monthly” and “Yield > 5%”.	Provides a comparable set of funds for a direct yield comparison.
Compute Distribution Coverage Ratio	Use the fund’s 10‑K financial statements: Operating cash flow ÷ total distribution for the quarter.	Shows whether the $0.25 per share is sustainable.

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5. “What‑If” Scenario: Suppose You Obtain the Prior‑Quarter Data

Imagine we find the following:

Quarter	Monthly Distribution	Quarterly Total	Annualized	Share Price at Distribution	Yield
Q2 2026 (July‑Sep 2025)	$0.20	$0.60	$2.40	$10.50	22.9 %
Q1 2026 (Apr‑Jun 2025)	$0.18	$0.54	$2.16	$10.30	21.0 %

Interpretation:

• Quarter‑over‑Quarter: The distribution increased 25 % from Q1 2026 ($0.18) to Q2 2026 ($0.25).
  
• Annualized Yield: rose from ≈21 % to ≈30 % (if the share price stayed ~ $10).
  
• Compared to peers (average 25 % yield in the sample set), SPMC moved from slightly below average to above the peer average in just one quarter.
  
• Sustainability check would then be essential: if cash‑flow coverage falls below 1.0, the higher payout could be a temporary special distribution rather than a permanent increase.

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6. Bottom‑Line Summary

Question	Answer (based on the news)
How does this quarterly distribution compare to previous quarters?	Cannot determine from the single press release alone; we need prior quarter distribution figures to assess growth or decline.
How does it compare to peer closed‑end funds?	The $0.25 per share monthly payout (≈ $3.00 annualized per share) falls in the mid‑to‑high range of typical CEF income payouts (roughly $0.20‑$0.30 monthly, yielding 20‑30 % if shares trade around $10). Exact ranking requires peers’ actual distribution amounts and current share prices.
What can we infer now?	It is a steady monthly payout that appears in line with many high‑yield CEFs. The annualized amount looks higher than average only if the share price is around $10. The real story—whether it’s a permanent increase, a special dividend, or sustainable—requires historical distribution data, cash‑flow coverage, and peer‑group yields.
Next step	Retrieve SPMC’s prior‑quarter press releases / Form 8‑K filings, get the share price at distribution dates, and pull a peer‑group yield table from a data provider to complete a detailed comparative analysis.

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Quick Action Checklist for a Complete Answer

1. Gather SPMC’s past three distribution announcements (Q1–Q3 2026) → per‑share amounts.
   
2. Pull SPMC’s share price at each distribution date → compute yields.
   
3. Collect peer data (same quarter) for comparable CEFs → calculate their yields.
   
4. Prepare a side‑by‑side table (like the one above).
   
5. Add a coverage‑ratio check to comment on sustainability.
   
6. Write the final comparison (including any trend—up, flat, down) and note whether SPMC’s payout is above, at, or below the peer‑group average.

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If you can supply the historical distribution figures or point to a source (e.g., an older press release), I can instantly calculate the quarter‑over‑quarter change and generate a concrete, numbers‑driven comparison.