On June 2, NXG NextGen Infrastructure Income Fund (NXG) increased its monthly distribution by 11.1%, from 54¢ to 60¢ per share.
The higher rate covers the June, July, and August 2026 distributions.
Payable June 30 for shareholders of record June 15.
Payable July 31 for shareholders of record July 15.
Payable August 31 for shareholders of record August 17.
NXG's contribution to DivGro's projected annual dividend income will increase by $2,160 to $21,600.
I own 3,000 shares of NXG at an average cost basis of $43.17 per share. Following this increase, my yield on cost will be 16.68%. The fund's forward distribution yield is 12.24% at $58.81 per share.
Since I opened my position in February 2025, the fund has delivered a total return of 44.9%, including $20,250 in distributions. That's a spectacular annualized rate of return of 52%!
| 2021 | 2022 | 2023 | 2024 | 2025 | • | 2026 |
| $2.56 | $2.56 | $4.26 | $6.41 | $6.41 | ⬆ | $6.90✝ |
NXG sets its payout under a managed-distribution policy, so the year-to-year totals reflect periodic resets rather than steady organic growth. The fund has lifted its monthly rate from $0.27 in early 2023 to $0.60 today, supported in part by a 2024 rights offering.
A note on taxes: NXG estimates that approximately 100% of these distributions will be characterized as return of capital. Return of capital is not taxed as income when received; it lowers my cost basis and defers the tax until I sell. For a closed-end fund, a high return-of-capital share is worth monitoring relative to net asset value, since distributions that outpace the fund's earnings erode NAV over time.
NXG has also recently traded at a premium to its net asset value.
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