Ellsworth Growth and Income Fund Ltd. Increases Quarterly Distribution 16% to $0.22 Per Share From $0.19 Per Share

Rhea-AI Summary

Ellsworth Growth and Income Fund (NYSE American: ECF) declared a quarterly cash distribution of $0.22 per share, a 16% increase from $0.19, payable on September 23, 2026 to shareholders of record on September 16, 2026.

The Fund intends to distribute the greater of 5% of its trailing 12‑month average month‑end market price or the Internal Revenue Code minimum. For fiscal 2026, distributions are currently estimated at approximately 5% from net investment income and 95% from net capital gains on a book basis, with final tax character determined after year end.

Positive

• Quarterly distribution raised 16% to $0.22 per share
• Defined distribution policy targeting at least 5% of trailing 12‑month average market price
• 2026 distributions estimated to include 95% net capital gains and 5% net investment income

Negative

• Distribution policy may be modified or terminated by the Board at any time
• Distributions may include return of capital if annual earnings are below aggregate distributions
• Current distribution rate is not indicative of dividend yield or total return on Fund shares

News Explained

The announced payment does not lock in future distributions, and an earnings shortfall could turn part of it into return of capital.

The Fund has declared the September 23, 2026 cash distribution, but its distribution policy can be modified or terminated by the trustees, so this payment does not establish a permanent commitment to the current level.

If the Fund’s earnings are insufficient to support its distributions, the excess may be treated as return of capital; that generally is not taxable when received but reduces a shareholder’s cost basis.

The stated distribution rate should not be interpreted as the Fund’s dividend yield or total return.

The final sources and tax treatment of 2026 distributions will be determined after the fiscal year ends, with shareholder reporting scheduled through Form 1099-DIV in early 2027.

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RYE, N.Y., Aug. 12, 2026 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) (the “Fund”) declared a $0.22 per share cash distribution payable on September 23, 2026 to common shareholders of record on September 16, 2026. The $0.22 quarterly distribution is a 16% increase from $0.19 per share.

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 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 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 2026 to common shareholders with respect to the Fund’s fiscal year ending September 30, 2026 would include approximately 5% from net investment income and 95% from net capital gains 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. The final determination of the sources of all distributions in 2026 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 2026 distributions in early 2027 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 $227 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: ECF
CUSIP – 289074106

Investor Relations Contact:
Bethany Uhlein
914.921.5546
buhlein@gabelli.com

FAQ

What quarterly distribution did Ellsworth Growth and Income Fund (ECF) announce on August 12, 2026?

Ellsworth Growth and Income Fund announced a $0.22 per share quarterly cash distribution. According to the Fund, this represents a 16% increase from the prior $0.19 distribution and will be paid to common shareholders as part of its stated distribution policy.

When will ECF shareholders receive the new $0.22 distribution and what is the record date?

The $0.22 per share distribution will be paid on September 23, 2026. According to Ellsworth Growth and Income Fund, common shareholders must be on record as of September 16, 2026 to receive this payment under the Fund’s regular quarterly distribution schedule.

How does Ellsworth Growth and Income Fund’s 5% distribution policy work for ECF shareholders?

The Fund intends to pay at least 5% of its trailing 12‑month average month‑end market price annually. According to Ellsworth Growth and Income Fund, this is compared with the Internal Revenue Code minimum, and the greater amount becomes the targeted annual distribution to common shareholders.

What is the estimated 2026 tax character of ECF’s distributions for Ellsworth Growth and Income Fund shareholders?

For fiscal 2026, distributions are currently estimated at about 5% net investment income and 95% net capital gains on a book basis. According to the Fund, final tax reporting will be determined after year end and provided on Form 1099‑DIV.

Can Ellsworth Growth and Income Fund’s (ECF) distributions include return of capital?

Yes, distributions can include return of capital if annual earnings are below aggregate distributions. According to Ellsworth Growth and Income Fund, any excess over earnings would generally reduce a shareholder’s cost basis and is typically not taxable, though final treatment appears on tax forms.

Does the current $0.22 ECF distribution reflect Ellsworth Growth and Income Fund’s investment performance?

No, the Fund cautions that the distribution rate should not be viewed as dividend yield or total return. According to Ellsworth Growth and Income Fund, shareholders should avoid drawing conclusions about performance solely from the distribution amount and instead review broader investment information.