J. & W. Seligman & Co. Incorporated
New York, January 19, 2006 – The Board of Directors of Seligman Quality Municipal Fund, Inc. (NYSE: SQF), today approved a change in the monthly dividend payment on the Fund’s common stock. Additionally, the Board of Directors of Seligman Select Municipal Fund, Inc. (NYSE: SEL) approved a change in the monthly dividend payment on that Fund’s common stock. Both changes are effective February 2006.
The new dividend for Seligman Quality Municipal Fund will be $0.045 per share, which represents a 5.3% decrease in the amount of the monthly dividend previously paid to stockholders. The new dividend for Seligman Select Municipal Fund will be $0.040 per share, which represents an 11.1% decrease in the amount of the monthly dividend payment previously paid to stockholders.
Brian T. Zino, President of Seligman Quality Municipal Fund and Seligman Select Municipal Fund, said that the dividend changes were required as a result of a narrowing of the spread between each Fund’s net earnings on its investment portfolios and the dividend rates paid on its preferred shares. “During 2005, yields on short-term securities, including the Funds’ preferred shares, rose significantly higher as a result of the Federal Reserve Board’s decision to increase the federal funds rate in a series of policy actions beginning in June 2004,” he explained. Mr. Zino also pointed out that a number of the higher-coupon bonds held in each of the Fund’s portfolios have been redeemed by their issuers. “The proceeds of the called bonds have been reinvested at lower current long-term rates resulting in a reduction in portfolio income,” he added.
Seligman Quality Municipal Fund and Seligman Select Municipal Fund are managed by J. & W. Seligman & Co. Incorporated, a New York-based investment manager and advisor, which was founded in 1864.
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