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

Rhea-AI Summary

The Gabelli Convertible and Income Securities Fund Inc. (NYSE:GCV) has declared a cash distribution of $0.12 per share, payable on June 23, 2022, to shareholders of record on June 15, 2022. The Fund aims for a minimum annual distribution of 8% of its average net asset value. The Board will review distribution levels regularly, with no guarantees on policy continuity. For 2022, distributions will consist of approximately 45% net capital gains and 55% return of capital. Shareholders will receive tax information via Form 1099-DIV in early 2023.

Positive

• Declared a cash distribution of $0.12 per share.
• Aims for a minimum annual distribution of 8% of average net asset value.

Negative

• Distributions may exceed earnings, leading to return of capital, which can affect long-term investment.
• The distribution policy is subject to modification without guarantees.

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 June 23, 2022 to common stock shareholders of record on June 15, 2022.

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. 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 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, 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 to common shareholders for 2022 would include approximately 45% from net capital gains and 55% 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 2022 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 2022 distributions in early 2023 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 $123 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/20220513005252/en/

Laurissa Martire

(914) 921-5399

Source: The Gabelli Convertible and Income Securities Fund Inc.

FAQ

What is the distribution amount declared by Gabelli Convertible and Income Securities Fund (GCV)?

The Fund has declared a cash distribution of $0.12 per share.

When is the distribution payable for GCV?

The distribution is payable on June 23, 2022.

What is the record date for GCV's distribution?

The record date for the distribution is June 15, 2022.

What percentage of the Gabelli Fund's distribution is expected to be a return of capital?

For 2022, approximately 55% of the distributions will be deemed a return of capital.

How often does the Board review GCV's distribution levels?

The Board reviews the distribution levels quarterly.