Nuveen Investments, a leading provider of diversified investment services, today announced an initial quarterly distribution declaration for the Nuveen Tax-Advantaged Dividend Growth Fund (NYSE:JTD) of $.4050 per share, or an 8.10% annualized distribution rate on its $20 IPO market price. The closed-end fund began trading on the New York Stock Exchange on June 27, 2007.

The Nuveen Tax-Advantaged Dividend Growth Fund's objective is to provide an attractive level of distributions as well as capital appreciation. The fund seeks to achieve its investment objective by investing in dividend-paying equity securities consisting primarily of common stocks of mid- to large-cap companies that have attractive dividend income and the potential for future dividend growth and capital appreciation and, to a lesser extent, preferred stocks of mid- to large-cap companies. Under normal market circumstances, the fund will invest at least 80% of its managed assets in securities that are eligible to pay tax-advantaged dividends.

The fund, to a limited extent, will write (sell) call options on various equity market indices. In addition, the fund intends to seek to increase common share net income and returns by utilizing financial leverage through borrowings and/or offering FundPreferred® shares that may represent up to approximately 33% of the fund's managed assets.

The fund has adopted a managed distribution program. The goal of the fund's managed distribution program is to provide shareholders relatively consistent and predictable cash flow by systematically converting its expected long-term return potential into regular distributions. As a result, regular distributions throughout the year will likely include a portion of expected long-term gains (both realized and unrealized), along with net investment income. Distributions from Nuveen's taxable closed-end funds are generally subject to Federal income taxes. Important points to understand about Nuveen fund managed distributions are:

  • Each Nuveen fund seeks to establish a relatively stable distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a fund's past or future investment performance from its current distribution rate.
  • Actual returns will differ from projected long-term returns (and therefore a fund's distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) fund net asset value.
  • Each quarter's distributions are expected to be paid from some or all of the following sources: 
        -- net investment income (regular interest and dividends),
        -- realized capital gains, and
        -- unrealized gains, or, in certain cases, a return of
           principal (non-taxable distributions)
  • A non-taxable distribution is a payment of a portion of the fund's capital. When fund returns exceed distributions, it may represent portfolio gains earned, but not realized as a taxable capital gain. In periods when fund returns fall short of distributions, it will represent a portion of your original principal unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when the fund's total return exceeds distributions.
  • Because distribution source estimates are updated quarterly based on a fund's performance and forecast for its current fiscal year (which is the calendar year for all the funds listed below), these estimates may differ from both the tax information reported to you in your fund's 1099 statement, as well as the ultimate economic sources of distributions over the life of your investment.

Information regarding Nuveen funds' distributions and total return performance over various time periods will be sent to shareholders with their distributions, and posted on www.nuveen.com/cef.

Additionally, estimates of the fund's distribution sources, reflecting year-to-date cumulative experience will also be mailed to shareholders and shown on www.nuveen.com/cef. These estimates are for informational purposes only. The estimates are calculated on a tax basis rather than on a generally accepted accounting principles (GAAP) basis, but should not be used for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year. The final determination of the source and tax characteristics of all distributions will be made in early 2008 and reported to shareholders on Form 1099-DIV at that time. 

The following dates apply to today's distribution declaration:

Record Date: September 15, 2007
Ex-Distribution Date: September 12, 2007
Payable Date: October 1, 2007

More information about the fund is available on www.nuveen.com/cef.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutions and high-net-worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Tradewinds, Rittenhouse and Symphony. In total, the Company manages $172 billion in assets as of June 30, 2007. Nuveen Investments is listed on the New York Stock Exchange and trades under the symbol ?JNC.?

Nuveen Investments
Maria Schwieder, 312-917-8343
maria.schwieder@nuveen.com