What are the investment strengths of XAI Madison Equity Premium Income Fund (MCN)?

NAV discount of 6% (P/B 0.94x) with 12%+ dividend yield offers income at below liquidation value; zero leverage eliminates credit risk Operating efficiency exceptional - G&A expense 415K (0.3% of assets) vs industry median 3M; 93.8% net margin vs 83.4% median

What are the investment risks for XAI Madison Equity Premium Income Fund (MCN)?

Dividend payout 232% of EPS unsustainable without capital gains; negative retained earnings (-30.6M) shows chronic capital erosion Revenue flat YoY (-0.04%) while 5Y EPS growth only 12.8% vs industry 11.7% - no alpha generation evident

XAI Madison Equity Premium Income Fund

MCN

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XAI Madison Equity Premium Income Fund AI Insights

Informational only. Not investment advice.

As of 2025-12-09

Snapshot

Trading at 0.94x book value (P/B TTM) - 6% discount to NAV despite 93.8% net margin and zero debt[Price to Book Ratio]
Dividend yield of 12.1% (0.72/share TTM) vs 0.31 EPS - payout ratio 232% funded by realized gains of 8.4M[Dividends Paid Per Share]
5Y revenue growth 78.8% vs industry median 10.2% driven by investment gains, not recurring income[Total Revenue 5 Year Growth]

Watch Triggers

Gain on Sale of Security: Falls below 6M annually — Realized gains fund dividend; shortfall forces NAV erosion or distribution cut
Price to Book Ratio: Discount widens beyond 15% — Signals market pricing in dividend cut or NAV impairment risk
Retained Earnings: Deteriorates below -40M — Accelerating capital depletion threatens fund viability

Bull Case

NAV discount of 6% (P/B 0.94x) with 12%+ dividend yield offers income at below liquidation value; zero leverage eliminates credit risk

Price to Book RatioDividends Paid Per ShareDebt to Equity

Operating efficiency exceptional - G&A expense 415K (0.3% of assets) vs industry median 3M; 93.8% net margin vs 83.4% median

General and Administrative ExpenseNet Margin

Bear Case

Dividend payout 232% of EPS unsustainable without capital gains; negative retained earnings (-30.6M) shows chronic capital erosion

Dividends Paid Per ShareEPSRetained Earnings

Revenue flat YoY (-0.04%) while 5Y EPS growth only 12.8% vs industry 11.7% - no alpha generation evident

Total Revenue 1 Year GrowthEPS Growth 5 Year

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

40%

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Forward Thesis

Dividend sustainability depends on continued realized gains; flat revenue (-0.04% 1Y) signals pressure

1-3ymed

Realized gains (8.4M TTM) exceed net income sources
Retained earnings deeply negative (-30.6M)
Zero debt limits financial flexibility

Gain on Sale of Security TTM: 8.4MRetained Earnings: -30.6MDebt to Equity: 0

Valuation Context

Caveats

Public Strategies Rankings

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MCN Fundamentals

Finance and Insurance → Funds, Trusts, and Other Financial Vehicles

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$128.18M		—
Enterprise Value	$0		—
P/E Ratio	20		—
Total Revenue - TTM	$6.86M	-0.0%	—
Earnings Per Share (diluted) - TTM	$0.31	+3.3%	—
Operating Margin - TTM	0%		—
Net Margin - TTM	93.8%	+0.2%	—
Free Cash Flow - TTM	$0		—
Return on Common Equity - TTM	0.05	+0.3%	—
Beta 5Y (Monthly)	unknown		—

MCN Dividend History

92 dividends

2025

12/15/25$0.0600

11/17/25$0.0600

10/15/25$0.0600

09/16/25$0.0600

08/15/25$0.0600

07/15/25$0.0600

06/16/25$0.0600

05/15/25$0.0600

04/15/25$0.0600

03/17/25$0.1800

2024

12/17/24$0.1800

09/17/24$0.1800

06/14/24$0.1800

03/14/24$0.1800

2023

12/14/23$0.1800

09/14/23$0.1800

06/15/23$0.1800

03/15/23$0.1800

2022

12/15/22$0.1800

09/15/22$0.1800

06/15/22$0.1800

03/15/22$0.1800

2021

12/15/21$0.1800

09/15/21$0.1800

06/15/21$0.1800

03/15/21$0.1800

2020

12/15/20$0.1800

09/15/20$0.1800

06/15/20$0.1800

03/16/20$0.1800

2019

12/16/19$0.1800

09/17/19$0.3429

06/17/19$0.1800

03/14/19$0.3429

2018

12/14/18$0.3395

09/17/18$0.3681

06/14/18$0.3420

03/14/18$0.3501

2017

12/14/17$0.3523

09/14/17$0.1800

06/14/17$0.1800

03/15/17$0.1800

2016

12/14/16$0.1800

09/14/16$0.3600

06/15/16$0.1800

03/15/16$0.1800

2015

12/15/15$0.1800

09/15/15$0.1800

06/16/15$0.1800

03/17/15$0.1800

2014

12/15/14$0.1800

09/15/14$0.1800

06/16/14$0.1800

03/17/14$0.1800

2013

12/13/13$0.2200

09/16/13$0.2200

06/14/13$0.2200

03/15/13$0.2200

2012

11/13/12$0.3581

08/13/12$0.3581

05/11/12$0.3581

02/13/12$0.3581

2011

11/10/11$0.1855

08/11/11$0.1855

05/11/11$0.1855

02/11/11$0.1855

2010

11/10/10$0.3600

02/10/10$0.1800

2009

11/10/09$0.1962

08/12/09$0.1800

05/13/09$0.1800

02/11/09$0.2400

2008

11/12/08$0.2400

08/13/08$0.2800

05/13/08$0.3300

02/13/08$0.3300

2007

11/13/07$0.3251

08/10/07$0.2816

08/13/07$0.3300

05/11/07$0.3251

02/13/07$0.3300

2006

11/13/06$0.3300

08/11/06$0.3300

05/11/06$0.3300

02/13/06$0.3300

2005

11/10/05$0.3300

08/11/05$0.3300

05/11/05$0.3300

02/11/05$0.3300

2004

11/10/04$0.3000

1970

05/12/10$0.3600

08/11/10$0.3600

MCN Stock Splits

No stock splits

MCN SEC Filings

Filing Date	Report Date	Report Type	Filing Link
06/30/25	06/30/25	N-CSRS	0001213900-25-084033
03/07/25	12/31/24	N-CSR	0001213900-25-021383
06/30/24	06/30/24	N-PX	0001438934-24-000165
02/29/24	12/31/23	N-CSR	0001753926-24-000427
06/30/23	06/30/23	N-CSRS	0001753926-23-001147
03/01/23	12/31/22	N-CSR	0001753926-23-000219
06/30/22	06/30/22	N-CSRS	0001753926-22-001159
02/28/22	12/31/21	N-CSR	0001753926-22-000251
06/30/21	06/30/21	N-CSRS	0001289868-21-000015
03/08/21	12/31/20	N-CSR	0001289868-21-000002
06/30/20	06/30/20	N-CSRS	0001209286-20-000219
03/04/20	12/31/19	N-CSR	0001289868-20-000002
06/30/19	06/30/19	N-CSRS	0001289868-19-000014
03/07/19	12/31/18	N-CSR	0001289868-19-000004
06/30/18	06/30/18	N-CSRS	0001289868-18-000049