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

Rhea-AI Summary

Gabelli Convertible and Income Securities Fund (NYSE:GCV) declared a cash distribution of $0.12 per share payable March 24, 2026 to shareholders of record March 17, 2026. The Fund targets a minimum annual distribution of 8% of average net asset value and may adjust policy.

Based on current accounting records, the 2026 distributions through the fiscal year ending September 30, 2026 are estimated to be ~4% net investment income, ~20% net capital gains and ~76% return of capital on a book basis; final tax components will be reported after year end.

Positive

• Declared cash distribution of $0.12 per share payable March 24, 2026
• Fund targets a minimum annual distribution of 8% of average NAV
• Estimated distribution components disclosed to shareholders in advance

Negative

• Estimated 76% of 2026 distributions treated as return of capital
• Distribution policy is subject to change by the Board at any time
• High return of capital may reduce shareholder cost basis and NAV

News Market Reaction – GAMI

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On the day this news was published, GAMI declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

RYE, N.Y., Feb. 11, 2026 (GLOBE NEWSWIRE) -- 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, 2026 to common stock shareholders of record on March 17, 2026.

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 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, 20% from net capital gains and 76% would be deemed a return of 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 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 Gabelli Convertible and Income Securities Fund 
The Gabelli Convertible and Income Securities Fund Inc. is a diversified, closed-end management investment company with $95 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

Investor Relations Contact:
Bethany Uhlein
(914) 921-5546
buhlein@gabelli.com

FAQ

What distribution did GCV (Gabelli Convertible and Income Securities Fund) declare on February 11, 2026?

The Fund declared a $0.12 per share cash distribution payable March 24, 2026. According to the company, shareholders of record on March 17, 2026 will receive the payout and tax-component details will follow after year end.

How is GCV’s minimum annual distribution policy defined for 2026?

GCV intends to pay a minimum annual distribution equal to 8% of average net asset value within a calendar year. According to the company, average NAV is calculated from the last day of the four preceding calendar quarters.

What are the estimated tax components of GCV’s 2026 distributions so far?

Current accounting estimates show approximately 4% net investment income, 20% net capital gains, and 76% return of capital. According to the company, final allocations will be determined after the fiscal year end and reported on Form 1099-DIV.

Will GCV’s $0.12 distribution count as taxable income for shareholders?

The tax treatment varies: distributions may be long-term capital gain, qualified dividend, investment company taxable income, or return of capital. According to the company, definitive tax breakdowns will be provided to taxable account holders in early 2027.

How might a return of capital portion affect GCV shareholders after the March 24, 2026 distribution?

A return of capital portion generally reduces a shareholder’s cost basis rather than being immediately taxable. According to the company, return of capital is non-taxable on receipt but will lower the cost basis for future gain/loss calculations.