Ellsworth Growth and Income Fund Declares Distribution
RYE, N.Y. — The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE: ECF) has announced a cash distribution of $0.41 per share for its common shareholders. This distribution will be payable on December 30 to all shareholders on record as of November 24.
Options for Shareholders Receiving Distributions
Shareholders participating in the Fund's Automatic Dividend Investment Plan have the flexibility to choose how they receive their distributions. They may opt to receive the distribution in cash or as additional shares, ensuring that all shareholders have options that suit their investment preferences. However, it's important to note that this distribution will be taxable for all shareholders, regardless of the chosen method.
Key Dates for the Upcoming Distribution
Shareholders wishing to make an election regarding their distribution must do so by December 15. If no election is made, shareholders will automatically receive their funds in beneficial shares of the Fund. The pricing to determine the number of shares will occur on December 16, based on market performance.
Distribution Policy and Regular Reviews
Ellsworth Growth and Income Fund is committed to providing a robust annual distribution, aiming for at least 5% of the Fund's trailing 12-month average market price. The Board of Trustees regularly reviews the potential distributions, considering various factors like net asset value and market conditions. They also evaluate if an adjusting distribution is needed in December to reflect any additional income or capital gains from the previous quarters.
Tax Implications for Shareholders
Understanding the tax implications is crucial for shareholders. All or part of the scheduled distribution may qualify as long-term capital gain or qualified dividend income, which are generally taxed at favorable rates. For individual shareholders with incomes exceeding certain thresholds, a 3.8% Medicare surcharge could apply to their net investment income.
Return of Capital Considerations
If the Fund doesn't generate adequate earnings equal to or exceeding the distributions paid, the excess will be classified as a return of capital. While this typically isn’t taxable, it does serve to reduce the shareholder’s original cost basis.
Investing with Ellsworth Growth and Income Fund
Ellsworth Growth and Income Fund Ltd., boasts total net assets of $216 million and invests primarily in convertible securities and common stock. This investment strategy aims to balance income generation alongside potential capital appreciation. Managed by Gabelli Funds, LLC, part of GAMCO Investors, Inc. (OTCQX: GAMI), it maintains a strong oversight of its investment policies.
Contact Information for Inquiries
For those interested in more insights or information regarding the Fund or its distribution policy, they can reach out to:
Bethany Uhlein
(914) 921-5546
buhlein@gabelli.com
Frequently Asked Questions
What is the declared distribution amount for 2025?
The declared distribution for 2025 is $0.41 per share.
When will shareholders receive their distribution?
Shareholders will receive their distribution on December 30, 2025.
What options do shareholders have for receiving distributions?
Shareholders can choose between cash distributions or receiving additional shares.
Are distributions taxable to shareholders?
Yes, all distributions are taxable to shareholders, regardless of the option they choose.
What is the investment focus of the Ellsworth Growth and Income Fund?
The Fund primarily invests in convertible securities and common stock aimed at generating income and capital appreciation.
