Ellsworth Growth and Income Fund Ltd. Declares Distribution of $0.19 per Share Reaffirms Annualized Distribution of $0.76 per Share

Rhea-AI Summary

Ellsworth Growth and Income Fund (NYSE American: ECF) declared a $0.19 per share cash distribution payable March 24, 2026, to shareholders of record March 17, 2026, a 20% increase from $0.16.

Annualized distribution rises to $0.76 from $0.64 and the Fund targets the greater of a 5% annual payout on trailing 12-month average market price or the IRC minimum for RICs. Estimated 2026 distribution composition is ~4% net investment income and ~96% net capital gains on a book basis.

Positive

• Quarterly distribution increased by 20% to $0.19 per share
• Annualized distribution rate raised to $0.76 from $0.64
• Policy targets a 5% annual payout on trailing 12-month average market price

Negative

• Estimated 96% of 2026 distribution from net capital gains (book basis)
• Distribution composition may not reflect recurring income for dividends

RYE, N.Y., Feb. 11, 2026 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) (the “Fund”) declared a $0.19 per share cash distribution payable on March 24, 2026 to common shareholders of record on March 17, 2026. This is a 20% increase from $0.16 per share, bringing the annualized distribution rate to $0.76 from $0.64 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, the current distribution paid in 2026 to common shareholders with respect to the Fund’s fiscal year ending September 30, 2026 would include approximately 4% from net investment income and 96% 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 $213 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 distribution did Ellsworth Growth and Income Fund (ECF) declare on February 11, 2026?

The Fund declared a $0.19 per share cash distribution payable March 24, 2026. According to the company, shareholders of record on March 17, 2026 will receive the distribution representing a 20% increase from $0.16.

How does the new annualized distribution for ECF compare to the prior rate?

Annualized distribution rose to $0.76 per share from $0.64. According to the company, this reflects the quarterly increase and implies a targeted annual payout equal to the new $0.19 quarterly rate.

What is Ellsworth Fund’s distribution policy and target yield for ECF?

The Fund intends to pay the greater of a 5% annual distribution on trailing 12-month average month-end market price or the IRC minimum for RICs. According to the company, the Board reviews distributions each quarter.

What are the estimated tax components of ECF’s 2026 distributions?

Estimated 2026 distribution composition is approximately 4% net investment income and 96% net capital gains on a book basis. According to the company, final tax components will be determined after year end and reported on Form 1099-DIV.

Could ECF’s distribution policy change and what would that mean for shareholders?

Yes, the Board may modify or terminate the distribution policy at any time, which could change payout levels. According to the company, shareholders should not assume the current policy or rate will continue indefinitely.