Frequently Asked Questions

Investing in Allied Capital Common Stock
Where does Allied Capital's common stock trade? Can I buy shares directly from Allied Capital or do I need a broker? Which research analysts follow Allied Capital? Who owns Allied Capital shares? What is Allied Capital's CUSIP number?
Investing in Allied Capital Retail Bonds
Where do Allied Capital's retail bonds trade? Can I buy the bonds directly from Allied Capital or do I need a broker? What interest rate is paid on Allied Capital’s retail bonds? When are the interest payments made? What is the CUSIP for Allied Capital's retail bonds? Where can I get more information about Allied Capital's debt issuances?
Dividends
Does Allied Capital pay dividends? Does Allied Capital have a Dividend Reinvestment plan? Do you have a direct deposit program for cash dividends? Are dividends taxable to stockholders and, if so, at what rate? Is Allied Capital’s dividend a “qualified dividend”?
Recordkeeping
Who do I contact with questions concerning my account activity, replacing lost or stolen certificates, transferring securities, dividend payments, direct deposit information, or processing a change of address? Does American Stock Transfer and Trust have a way for me to check the status of my account online? Am I a registered shareholder?

Where does Allied Capital's common stock trade?

Allied Capital common shares trade on the New York Stock Exchange. Our ticker symbol is ALD.

Can I buy shares directly from Allied Capital or do I need a broker?

Investors must go through a broker to purchase shares of Allied Capital stock, although existing shareholders may reinvest their cash dividends to acquire additional shares via our Dividend Reinvestment Plan.

What interest rate is paid on Allied Capital’s retail bonds? When are the interest payments made?

Allied Capital’s retail bonds (NYSE: AFC) pay interest at an annual rate of 6.875%. Bondholders of record on January 1, April 1, July 1 and October 1 are paid interest on the 15th of each month in which there is a record date. If the 15th falls on a weekend or a holiday, interest is paid on the next business day.

Who owns Allied Capital shares?

As of December 31, 2007 we have about 179,000 shareholders. Approximately 66% of our shares are held by retail investors, and approximately 34% are held by mutual funds and other institutional investors. Click here to view Insider Ownership information.

What is Allied Capital's CUSIP number?

Allied Capital's CUSIP number is 01903Q 108.

Where do Allied Capital's retail bonds trade?

Allied Capital's retail bonds that mature in 2047 trade on the New York Stock Exchange. The ticker symbol is AFC.

Can I buy the bonds directly from Allied Capital or do I need a broker?

Investors must go through a broker to purchase Alllied Capital's retail bonds.

What is the CUSIP for Allied Capital's retail bonds?

The CUSIP for Allied Capital's retail bonds is 01903Q207

Where can I get more information about Allied Capital's debt issuances?

We have summarized the information on all of Allied Capital's public debt issuances here.

Yes. Our dividend reinvestment plan ("DRIP") provides you with a simple way to increase your holdings by acquiring additional shares of Allied Capital through the reinvestment of your dividends and distributions. There are no fees associated with participation in the DRIP, and because generally you are buying shares directly from the Company, it eliminates brokerage commissions on share purchases. All of the terms and conditions are detailed in the DRIP.

Yes, dividends can be deposited directly into your bank account free of charge by completing a Direct Deposit Option form. If you are not reinvesting your dividends, we strongly encourage all registered holders to enroll in direct deposit to avoid the risk of lost, stolen, or delayed dividend checks.

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Are dividends taxable to stockholders and, if so, at what rate?

Dividends are generally taxable in the year in which they are declared by Allied Capital. In January of each year we provide a Form 1099-DIV and a tax status letter to stockholders that describe the taxability of the dividends paid in the preceding year, including a breakdown between ordinary income and capital gains. DRIP participants are taxed on the dividends as if they had received cash.

Is Allied Capital’s dividend a “qualified dividend”?

No, Allied Capital's dividend is generally not a "qualified dividend" for tax purposes and therefore generally is not eligible for the lower qualified dividend tax rate.  As a regulated investment company, Allied Capital generally does not pay income taxes on its earnings at the corporate level, but passes its income through to shareholders in the nature that it was earned. Therefore, a portion of our dividend is usually taxable to our shareholders at their ordinary income tax rates and a portion typically qualifies for the long-term capital gains tax rates. Historically, a meaningful portion of our dividend has qualified for such long-term capital gains tax rates.

For more information about the tax treatment of our dividend, please refer to our tax information page here.

Whom do I contact with questions concerning my account activity, replacing lost or stolen certificates, transferring securities, dividend payments, direct deposit information, or processing a change of address?

Please contact our transfer agent:
American Stock Transfer & Trust Company
Dividend Reinvestment Department
59 Maiden Lane, Plaza Level
New York, NY 10038
(800) 937-5449
Outside the U.S. (212) 936-5100
info@amstock.com

Does American Stock Transfer and Trust have a way for me to check the status of my account online?

Yes. Registered shareholders may sign up for online account access at www.amstock.com .

Am I a registered shareholder?

You are a registered shareholder if your securities are registered in your name and you hold a certificate of ownership either in your possession or in book-entry form in safekeeping with our transfer agent. If your shares are not registered in your name but instead are held in the name of your broker, your securities are considered to be held in "street name."