Ellsworth Growth and Income Fund Ltd. Declares Distribution of $0.13 Per Share

Rhea-AI Summary

The Board of Trustees of Ellsworth Growth and Income Fund declared a $0.13 per share cash distribution, payable on June 21, 2024, to shareholders as of June 13, 2024. The Fund's policy aims to distribute 5% of the trailing 12-month average market price or comply with the minimum distribution requirement of the Internal Revenue Code. Quarterly reviews are conducted to determine potential distributions, which may be adjusted in December if necessary. The distribution includes approximately 40% net investment income and 60% return of capital. Shareholders will receive detailed tax treatment notifications in early 2025.

Positive

• Declared a $0.13 per share cash distribution.
• Distribution payable on June 21, 2024.
• Fund aims to pay 5% of trailing 12-month average market price or meet minimum distribution requirements.
• Includes 40% net investment income.
• Quarterly reviews ensure regular assessment of distributions.

Negative

• 60% of the distribution is a return of capital, reducing shareholders' cost basis.
• No guarantee that the distribution policy will continue.
• Distribution rate should not be considered a dividend yield or total return.
• Potential for tax liabilities including a 3.8% Medicare surcharge for certain shareholders.
• Uncertainty in final distribution sources, which may vary from quarterly estimates.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) (the “Fund”) declared a $0.13 per share cash distribution payable on June 21, 2024 to common shareholders of record on June 13, 2024.

The Fund intends to pay the greater of either an annual distribution of 5% of the Fund’s trailing 12-month average month-end market price or an amount that meets the minimum distribution requirement of the Internal Revenue Code for regulated investment companies.

Each quarter, the Board of Trustees reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the current financial market environment. If necessary, the Fund pays an adjusting distribution in December, which includes any additional income and net realized capital gains in excess of the quarterly distributions. The Fund’s distribution policy is subject to modification or termination by the Board of Trustees at any time, and there can be no guarantee that the policy will continue. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both) for individuals, each subject to the maximum federal income tax rate for long term capital gains, which is currently 20% in taxable accounts for individuals (or less depending on an individual’s tax bracket). In addition, certain U.S. shareholders who are individuals, estates or trusts and with income that exceeds certain thresholds will be required to pay a 3.8% Medicare surcharge on their "net investment income", which includes dividends received from the Fund and capital gains from the sale or other disposition of shares of the Fund.

If the Fund does not generate sufficient earnings (dividends and interest income, less expenses, and realized net capital gain) equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s earnings would be deemed a return of capital. Since this would be considered a return of a portion of a share-holder’s original investment, it is generally not taxable and would be treated as a reduction in the shareholder’s cost basis.

Long-term capital gains, qualified dividend income, investment company taxable income and return of capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year. Based on the accounting records of the Fund currently available, each of the distributions paid in 2024 to common shareholders with respect to the Fund’s fiscal year ending September 30, 2024 would include approximately 40% from net investment income and 60% would be deemed a return of capital on a book basis. This information does not represent information for tax reporting purposes. The estimated components of each distribution are updated and provided to shareholders of record in a notice accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2024 will be made after year end and can vary from the quarterly estimates. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution. All individual shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2024 distributions in early 2025 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

Bethany Uhlein
(914) 921-5546

About Ellsworth Growth and Income Fund
Ellsworth Growth and Income Fund Ltd. is a diversified, closed-end management investment company with $175 million in total net assets. ECF invests primarily in convertible securities and common stock with the objectives of providing income and the potential for capital appreciation, objectives the Fund considers to be relatively equal over the long-term due to the nature of the securities in which it invests. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE American: ECF
CUSIP – 289074106

ELLSWORTH GROWTH AND INCOME FUND LTD.
Investor Relations Contact:
Bethany Uhlein
914.921.5546
buhlein@gabelli.com

FAQ

What is the declared cash distribution for ECF shareholders in June 2024?

Ellsworth Growth and Income Fund declared a $0.13 per share cash distribution payable on June 21, 2024.

When is the record date for ECF's June 2024 distribution?

The record date is June 13, 2024.

What portion of ECF's 2024 distributions is considered return of capital?

Approximately 60% of the 2024 distributions are deemed a return of capital.

How often does ECF review its distribution amount?

The Board of Trustees reviews the distribution amount quarterly.

What is the fund’s distribution policy for 2024?

The fund intends to pay the greater of an annual distribution of 5% of the trailing 12-month average market price or meet the minimum distribution requirement of the Internal Revenue Code.