Gabelli Convertible and Income Securities Fund Announces Total Distributions for 2021 of $0.56 Per Common Share

Rhea-AI Summary

The Gabelli Convertible and Income Securities Fund Inc. (NYSE:GCV) announced total distributions for 2021 of $0.56 per share, comprising $0.53 previously paid and an additional $0.03 per share. This distribution is payable on January 6, 2022, to shareholders of record as of December 30, 2021. The additional payment helps meet minimum distribution requirements under the Internal Revenue Code, avoiding Federal excise tax. Of the total distribution, approximately 2% comes from net investment income and 98% from net capital gains.

Positive

• Total distributions for 2021 increased to $0.56 per share, up from $0.53.
• Additional distribution of $0.03 helps avoid Federal excise tax.

Negative

• None.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Directors of The Gabelli Convertible and Income Securities Fund Inc. (NYSE:GCV) (the “Fund”) announces total distributions for 2021 of $0.56 per share, which includes $0.53 previously paid plus an additional $0.03 per share. The additional cash distribution is payable on January 6, 2022 to common stock shareholders of record on December 30, 2021.

The additional distribution is being made to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies and avoid Federal excise tax on undistributed investment company taxable income. The additional distribution will be included in the 2021 income for shareholders subject to income tax.

All or part of the distributions 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 whose income 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.

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 to common shareholders for 2021 would include approximately 2% from net investment income and 98% from net capital gains on a book basis. This 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 for 2021 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 2021 distributions in early 2022 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:

Laurissa Martire
(914) 921-5399

About Gabelli Convertible and Income Securities Fund

The Gabelli Convertible and Income Securities Fund Inc. is a diversified, closed-end management investment company with $150 million in total net assets whose primary investment objective is to seek a high level of total return on its assets through a combination of current income and capital appreciation. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE: GCV
CUSIP – 36240B109

View source version on businesswire.com: https://www.businesswire.com/news/home/20211220005877/en/

Laurissa Martire

(914) 921-5399

Source: The Gabelli Convertible and Income Securities Fund Inc.

FAQ

What are the total distributions announced by Gabelli Convertible and Income Securities Fund for 2021?

The total distributions for 2021 are $0.56 per share.

When is the additional distribution for GCV payable?

The additional distribution is payable on January 6, 2022.

What is the purpose of the additional distribution for GCV?

It is to satisfy the minimum distribution requirements under the Internal Revenue Code.

How much of the distribution for 2021 comes from net investment income?

Approximately 2% of the distributions for 2021 come from net investment income.

What is the tax treatment for the distributions of GCV?

Components may be treated as long-term capital gain or qualified dividend income, subject to federal income tax.

Who can provide more information about GCV's distribution policy?

Laurissa Martire at (914) 921-5399 can provide more information.