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

Rhea-AI Summary

The Gabelli Convertible and Income Securities Fund (NYSE:GCV) announced a cash distribution of $0.12 per share, payable on March 24, 2023, to shareholders of record by March 17, 2023. This distribution aligns with the Fund's policy of a minimum annual payout of 8% of its average net asset value. The Fund's net asset value is subject to daily fluctuations, and the distribution is subject to modification by the Board of Directors. Shareholders should be aware that part of the distribution may be categorized as a return of capital, which is generally not taxable. The Fund's total net assets stand at $101 million.

Positive

• Declared a cash distribution of $0.12 per share, indicating continued shareholder returns.
• Maintains a distribution policy of a minimum of 8% of average net asset value, providing potential for stable income.

Negative

• Current distribution is 100% from paid-in capital, which could indicate unsustainable earnings.
• Potential for distributions to be classified as a return of capital, reducing shareholder cost basis.

RYE, N.Y.--(BUSINESS WIRE)-- 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 March 24, 2023 to common stock shareholders of record on March 17, 2023.

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, the current distribution paid to common shareholders in 2023 would be deemed 100% from paid-in 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 2023 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 2023 distributions in early 2024 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 $101 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230217005223/en/

Investor Relations Contact:

Laurissa Martire

(914) 921-5399

lmartire@gabelli.com

Source: The Gabelli Convertible and Income Securities Fund Inc.

FAQ

When will the Gabelli Convertible and Income Securities Fund pay its cash distribution?

The cash distribution of $0.12 per share will be paid on March 24, 2023.

What is the minimum annual distribution rate for the Gabelli Convertible and Income Securities Fund?

The Fund aims for a minimum annual distribution of 8% of its average net asset value.

What are the total net assets of the Gabelli Convertible and Income Securities Fund?

The Fund has total net assets of $101 million.

What should shareholders know about the distribution's tax implications?

Part of the distribution may be treated as a return of capital, which is generally not taxable and reduces the cost basis for shareholders.