Gabelli Convertible and Income Securities Fund Declares Distribution of $0.12 Per Share

Rhea-AI Summary

The Gabelli Convertible and Income Securities Fund (NYSE:GCV) has declared a $0.12 per share cash distribution, payable on June 21, 2024, to shareholders of record as of June 13, 2024. The fund aims to provide a minimum annual distribution of 8% of its average net asset value or meet the minimum distribution requirements of the Internal Revenue Code. The fund's net asset value per share fluctuates daily. The Board of Directors reviews potential distributions each quarter, considering the fund's net asset value and financial market conditions. The distribution policy can change at any time and should not be considered a dividend yield or total return on investment. The distributions may include long-term capital gain, qualified dividend income, or a return of capital. For 2024, approximately 83% of distributions are from net investment income, with 17% as a return of capital. Shareholders will receive detailed tax information in early 2025 via Form 1099-DIV.

Positive

• Declared distribution of $0.12 per share, payable on June 21, 2024.
• The fund aims to provide a minimum annual distribution of 8% of its average net asset value.
• 83% of distributions in 2024 are from net investment income.
• The fund's Board proactively monitors distribution levels and the financial market environment.

Negative

• 17% of the distributions in 2024 are deemed a return of capital, reducing shareholders' cost basis.
• Distribution policy is subject to modification, providing no guarantee of continuation.
• The declared distribution should not be considered as a dividend yield or total return, potentially misleading investors about performance.
• If earnings are not sufficient, distributions could be a return of capital, affecting future investment value.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Convertible and Income Securities Fund Inc. (NYSE:GCV) (the “Fund”) declared a $0.12 per share cash distribution payable on June 21, 2024 to common stock shareholders of record on June 13, 2024.

The Fund intends to pay a minimum annual distribution of 8% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The average net asset value of the Fund is based on the average net asset values as of the last day of the four preceding calendar quarters during the year. The net asset value per share fluctuates daily.

Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the current financial market environment. The Fund’s distribution policy is subject to modification by the Board of Directors 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 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.

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 shareholder’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 83% from net investment income and 17% would be deemed a return of capital 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 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:

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 $80 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. (OTCQX: GAMI).

NYSE: GCV
CUSIP – 36240B109

THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC.
Investor Relations Contact:
Laurissa Martire
(914) 921-5399
lmartire@gabelli.com

FAQ

When will the Gabelli Convertible and Income Securities Fund (GCV) distribution be paid?

The $0.12 per share cash distribution will be paid on June 21, 2024.

What is the record date for the GCV distribution?

The record date for the distribution is June 13, 2024.

How much is the GCV distribution declared in May 2024?

The distribution declared is $0.12 per share.

What portion of GCV's 2024 distribution is from net investment income?

Approximately 83% of the 2024 distribution is from net investment income.

What portion of GCV's 2024 distribution is considered a return of capital?

Approximately 17% of the 2024 distribution is deemed a return of capital.

Can the GCV distribution policy change?

Yes, the distribution policy is subject to modification by the Board of Directors at any time.

Should the GCV distribution be considered as a dividend yield or total return?

No, the distribution rate should not be considered as the dividend yield or total return on an investment in the Fund.

What are the tax implications of GCV's distributions?

Distributions may be treated as long-term capital gain, qualified dividend income, or a return of capital. Tax details will be provided on Form 1099-DIV in early 2025.