Ellsworth Growth and Income Fund Ltd. Declares Distribution of $0.13 Per Share
May 16 2024 - 8:56AM
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: ECFCUSIP – 289074106
ELLSWORTH GROWTH AND INCOME FUND LTD.Investor Relations Contact:
Bethany Uhlein914.921.5546buhlein@gabelli.com
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