Liberty All-Star Growth Fund Raises Quarterly Distribution

Liberty All-Star Growth Fund, Inc. (NYSE: ASG) raised its quarterly distribution to $0.12 per share from $0.11, an increase of 9.09%. The shares had an ex-dividend date of July 16, 2026.

At a share price of $5.02, the fund’s forward annual yield is 9.36%, based on an annual dividend of $0.47 per share. ASG has a market capitalization of $319,862,720.

The increase reflects the structure of ASG’s managed-distribution policy rather than a conventional operating-company dividend-growth program. The closed-end fund sets quarterly distributions with reference to its net asset value. Its July declaration said the payment was made under that policy. The fund also cautioned that distributions can include net investment income, realized capital gains or return of capital, with the final tax characterization determined after year-end. Liberty All-Star Growth Fund distribution announcement

ASG seeks long-term capital appreciation through an all-cap growth portfolio. It uses multiple external managers, each responsible for a different market-capitalization segment, according to the fund’s materials. Liberty All-Star Growth Fund quarterly update

The fund’s semiannual SEC filing describes ASG as maintaining both a diversified growth portfolio and a quarterly fixed-distribution policy. That structure means changes in portfolio value can affect subsequent payments even when the board has not adopted a traditional annual dividend-growth target. ASG semiannual shareholder report

What it means for income investors

The higher quarterly payment increases near-term cash income, but ASG does not have a consecutive annual distribution-growth streak and previously reduced its distribution in 2023. Its dividend-safety score is 52, corresponding to a B grade.

Investors should also distinguish a closed-end fund distribution from an operating-company dividend. Because ASG’s payment is linked to net asset value and may draw from several sources, the distribution amount and tax treatment can change. Return of capital, when present, is not necessarily current investment income and generally reduces a shareholder’s cost basis, according to the fund’s distribution-policy disclosure. ASG distribution and tax policy