January 19, 2024
Capital gain distributions for 2023 are listed below. For American Funds, distributions are based on the fund shares owned at the beginning of the day on the record date. For Capital Group exchange-traded funds, distributions are based on the fund shares owned at the end of the day on the record date.
Read our Capital gains FAQ to learn about capital gain distributions and how they affect your account.
* Some funds may pay a year-end distribution of short-term capital gains, which are taxed as ordinary income.
In December, many of the American Funds paid regular income dividends. In addition, several funds paid special dividends.
Please refer to the estimated taxable income dividends (PDF) — which includes regular and special dividends — for your year-end planning.
Actual dividend amounts in December may vary.
The following American Funds paid special dividends in December, in addition to their regular dividend payments.
1 While the regular dividend payments for these funds are 100% tax-exempt, the special dividends disclosed in the chart are 100% taxable.
Funds that invest in stocks of U.S. corporations and many of those based outside the U.S. pay dividends that qualify for lower tax rates. However, when a fund derives a significant portion of its income from sources such as interest, short-term capital gains and dividends from certain international corporations, a portion of its dividend does not qualify for reduced tax rates. Instead, that portion is taxed at the ordinary income rates. Funds that derive all of their income from investments in bonds, money market instruments and non-dividend-paying investments do not pay qualified dividends.
For most investors, the amount of qualified dividends received will be reported on Form 1099-DIV (mailed by January 31, 2024).
* This percentage applies to the fund's taxable income dividends and foreign taxes reported on Box 1a of Form 1099-DIV.
† This percentage applies to the fund's short-term capital gain distributions reported on Box 1a of Form 1099-DIV.
A portion of the income dividends distributed by American Funds Emerging Markets Bond Fund®, American Funds Strategic Bond Fund and Capital World Bond Fund® during 2023 was classified as a return of capital. See "Form 8937: Report of Organizational Actions" in our Tax Center for more information. The actual amount of return of capital will be reported in Box 3 “Nondividend Distributions” of the 2023 1099-DIV (available late January).