Business & Finance
Business and Finance
Business and Finance 
Wed, March 18, 2009
Tue, March 17, 2009
Mon, March 16, 2009
Kayne Anderson Energy Total Return Fund, Inc.: Kayne Anderson Energy Total Return Fund, Inc. Announces Dividend of $0.48 per Sh
HOUSTON, TX--(Marketwire - March 16, 2009) - Kayne Anderson Energy Total Return Fund, Inc. (the "Fund") (
The dividend for the quarter ended February 28, 2009 will be payable on April 17, 2009 to common stockholders of record on April 3, 2009, with an ex-dividend date of April 1, 2009. It is anticipated that greater than 50% of this dividend will be treated as a "distribution" or return of capital for tax purposes. The final determination of such amount will be made in early 2010 when the Fund can determine its earnings and profits. The final tax status of the dividend/distribution may differ substantially from this preliminary information.
"Our current dividend is consistent with the cash and other investment income generated by our portfolio investments during the quarter," stated Kevin McCarthy, CEO of the Fund. "In our previous guidance, we had anticipated that certain MLPs, royalty trusts and marine transportation companies would reduce their dividends and distributions during 2009 in response to lower commodity prices and a general slowdown of worldwide economic activity."
"During the first quarter, several companies in our portfolio cut dividends and distributions more severely than we anticipated, in part due to further erosion of commodity prices. As a result, we currently believe our portfolio investments will generate cash and other investment income sufficient to pay a quarterly dividend for the remainder of 2009 in the range of $0.44 to $0.46 per share. To the extent that commodity prices remain at levels that are below current consensus estimates, or the slowdown in global economic activity further reduces demand for marine transportation services, dividends and distributions from our portfolio companies could be reduced further. We have continued to modify our portfolio by adding fixed income securities and other securities with secure dividends and distributions in order to mitigate these risks," stated Mr. McCarthy.
"Payment of future dividends is subject to board approval, as well as meeting the covenants of our senior debt and the asset coverage requirements of the 1940 Act. Of course, should dividends and distributions from our portfolio investments be less than our expectations, we would re-evaluate the appropriate dividend rate at that time," stated Mr. McCarthy.
The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 whose common stock is traded on the NYSE. The Fund's investment objective is to obtain a high total return with an emphasis on current income by investing primarily in securities of companies engaged in the energy industry, principally including publicly-traded energy-related master limited partnerships and limited liability companies taxed as partnerships and their affiliates, energy-related U.S. and Canadian royalty trusts and income trusts and other companies that derive at least 50% of their revenues from operating assets used in, or providing energy-related services for, the exploration, development, production, gathering, transportation, processing, storing, refining, distribution, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund's historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Fund's filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund's investment objectives will be attained.