Eaton Vance Floating-Rate Fund Declares Higher Payout for Tax Year

The Eaton Vance Floating-Rate Income Trust (NYSE: EFT) has announced an early monthly distribution of $0.0860 per share for December 2025. This declaration, made on December 19, is designed to satisfy the fund’s distribution requirements for the 2025 tax year. Based on the previous day’s closing price of $11.24, this payout represents an annualized distribution yield of approximately 9.18%.

Managed by Eaton Vance Management, the closed-end fund has set the following critical dates for investors:
* Ex-Dividend Date: December 30, 2025
* Payment Date: January 15, 2026

The new distribution amount marks an increase of $0.006 over the prior level. This upward adjustment suggests robust cash flow generation from the fund’s underlying portfolio of floating-rate loans. The accelerated announcement is a standard industry practice, primarily aimed at preserving the tax-efficient structure of the fund for the 2025 calendar year.

Should investors sell immediately? Or is it worth buying Eaton Vance Floating-Rate Income?

Strategic Timing and Portfolio Characteristics

This move by the trust coincides with a period when numerous fund companies are finalizing their December distributions for tax purposes. The current interest rate environment is favorable for funds like EFT, as the coupons on their floating-rate loans adjust upward, potentially generating higher income. The trust has maintained a consistent record of distributions since its inception in 2004.

Funds specializing in senior loans, such as the Eaton Vance Floating-Rate Income Trust, are frequently viewed as diversification tools. Their near-zero interest rate duration results in a lower correlation with traditional fixed-income benchmarks.

Market attention now turns to the ex-dividend date of December 30. Shareholders must own the fund’s shares prior to this date to qualify for the upcoming payment. Looking ahead, the trust’s ability to sustain this elevated distribution level into the first quarter of 2026 will be closely tied to the future interest rate path set by the U.S. Federal Reserve.