Ellsworth Growth and Income Fund Announces Direct Share Distribution

Ellsworth Growth and Income Fund Ltd. Announces Cash Distribution

The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (ECF) has declared a $0.16 cash distribution per share. This payment underscores the Fund's ongoing commitment to delivering value to its shareholders. The distribution is earmarked for common shareholders who are on record by a specific date.

Understanding Distribution Policies

This particular distribution is part of the Fund's strategy to pay out a minimum of 5% annually based on its average month-end market price over the past year. This ensures that shareholders receive returns reflective of the Fund's performance in the financial market.

Quarterly Review of Distributions

Every quarter, the Board evaluates the potential for distributions based on various factors, such as the income generated, realized capital gains, and available capital. The aim is to maintain a sustainable payout that aligns with the Fund's overall financial health. If necessary, an additional distribution might be paid in December, accounting for any surplus income or gains.

Tax Implications for Shareholders

It's important for shareholders to understand how distributions may affect their tax obligations. Portions of this distribution might fall under long-term capital gains or could be classified as qualified dividend income. While the current maximum federal tax for long-term capital gains is 20%, investors should be aware of additional surcharges applicable to high-income earners.

Return of Capital Considerations

Should the Fund face inadequate earnings to cover the distributions made in a particular year, any excess paid would be treated as a return of capital. This situation typically isn't taxable, as it reduces the shareholder's initial investment cost basis.

Components of Distribution

For the fiscal year 2025, the Fund's distributions are projected to consist of about 20% from net investment income and 80% from net capital gains. Shareholders can expect detailed notifications regarding the components and tax treatment of their distributions in the upcoming year.

Investing in Ellsworth Growth and Income Fund

Investors should conduct thorough due diligence before engaging with the Fund. It's crucial to weigh the investment objectives against the risks, charges, and expenses involved. For more details, shareholders and potential investors can reach out to the Fund's dedicated investor relations representative.

About Ellsworth Growth and Income Fund Ltd.

Ellsworth Growth and Income Fund Ltd. operates as a diversified closed-end management investment company, currently managing assets totaling approximately $199 million. The Fund primarily targets investments in convertible securities and common stock, aiming to balance income generation with potential capital appreciation. Gabelli Funds, LLC manages the Fund, which is a subsidiary of GAMCO Investors, Inc. (GAMI).

Frequently Asked Questions

What is the distribution declared by ECF?

Ellsworth Growth and Income Fund Ltd. declared a cash distribution of $0.16 per share.

When will the distribution be payable?

The distribution will be paid to shareholders on record as of a specified date, which is generally set ahead of the payment date.

How is the distribution rate determined?

The distribution rates are typically set after reviewing the Fund's financial performance, assessing both income and capital gains available for distribution.

What tax implications should shareholders be aware of?

Shareholders might face federal taxes based on how the distribution is classified, which can include long-term capital gains or qualified dividends.

How can investors contact the Fund for more information?

Investors can reach out to Bethany Uhlein at (914) 921-5546 for further inquiries regarding the Fund's operations and distribution policies.

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