Neuberger Fund Announces $0.0584 Monthly Distribution

Neuberger Energy Infrastructure and Income Fund Inc. has announced a monthly distribution of $0.0584 per share for its common stockholders [1]. The closed-end, non-diversified fund, which trades on the NYSE American under the symbol NML, stated it intends to provide regular cash flow through a strategy focused on total return with an emphasis on current income [1][2].

Key takeaways

• The Fund declared a monthly distribution of $0.0584 per share [1][3].
• Sources provide conflicting payment dates of January 30, 2026, and February 27, 2026 [1][3].
• Distributions are funded by cash flow from master limited partnerships, dividends, and interest, minus expenses and taxes [1][3].
• A portion of the payout may be classified as a non-taxable return of capital, which reduces an investor's cost basis [1][3].

Conflicting Payment Dates and Eligibility

The announcement outlines specific dates for the distribution, though available sources provide conflicting information regarding the payment day. One report states the distribution is payable on January 30, 2026, with a record date and ex-date of January 15, 2026 [1]. However, another source lists the payment date as February 27, 2026, without specifying the record or ex-dates [3]. The Fund says it currently intends to make regular monthly cash distributions at a fixed rate per share, though this rate is subject to ongoing review and adjustment based on the projected net rate of return of its investments and other factors [1][3].

Funding Sources and Tax Structure

The Fund plans to pay distributions out of its distributable cash flow, which is derived from cash and paid-in-kind distributions from master limited partnerships (MLPs), dividends from common stocks, and interest from debt instruments [1][3]. These payments are made after deducting operating expenses, leverage costs, and taxes on the Fund's taxable income [1]. Unlike many investment companies, the Fund is subject to federal income tax, meaning taxes paid will reduce the amount available for distribution, potentially resulting in lower payouts compared to direct investment in MLPs [1][3]. The Fund also notes it must provide notice under Section 19 of the Investment Company Act for distributions that do not consist solely of net investment income [3].

Why it matters

Investors should be aware that a portion of the distribution may constitute a non-taxable return of capital rather than a dividend [1][3]. This distinction is significant because a return of capital represents a return of the investor's original investment and reduces a stockholder's basis in the Fund, which can increase capital gains or reduce capital losses upon the sale of shares [1][3]. The Fund emphasizes there is no assurance it will always be able to pay a distribution of any particular amount, and the final determination of the source and tax characteristics of distributions will be made after the end of the calendar year [1][3].