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.
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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
Key Figures
Cash distribution:$0.12 per shareMinimum annual distribution:8% of average NAVLong-term capital gains tax rate:20%+5 more
8 metrics
Cash distribution$0.12 per shareDeclared payable March 24, 2026
Minimum annual distribution8% of average NAVStated fund distribution policy
Long-term capital gains tax rate20%Maximum federal rate for individuals on long-term gains
Medicare surcharge3.8%Applied to net investment income above certain thresholds
2026 distribution – net investment income4%Estimated component of current 2026 distribution (book basis)
2026 distribution – net capital gains20%Estimated component of current 2026 distribution (book basis)
2026 distribution – return of capital76%Estimated component of current 2026 distribution (book basis)
Distribution payment dateMarch 24, 2026Payment date to shareholders of record on March 17, 2026
Market Reality Check
Price:$25.00Vol:Volume 93,086 vs 20-day a...
normal vol
$25.00Last Close
VolumeVolume 93,086 vs 20-day average 98,248 suggests typical trading activity ahead of the news.normal
TechnicalPrice at $4.50 is above the $4.06 200-day MA and sits 1.1% below the 52-week high of $4.55.
Peers on Argus
GCV slipped 0.44% while peers showed mixed moves: DMA and DTF down (-0.68%, -0.6...
GCV slipped 0.44% while peers showed mixed moves: DMA and DTF down (-0.68%, -0.69%), GDO and GLV modestly up (0.09%, 0.48%), FMN flat. No clear sector-wide direction.
Declared $0.12 quarterly distribution within 8% minimum NAV policy.
Pattern Detected
Recent distribution declarations at $0.12 per share have been followed by modest, mixed price reactions, suggesting these announcements are largely treated as routine.
Recent Company History
In the last six months, GCV repeatedly highlighted its managed distribution approach. On Aug 21, 2025, it declared a $0.12 quarterly distribution under its 8% minimum annual distribution policy, with an estimated composition of 13% net investment income and 87% return of capital, and the stock moved 0.25%. A similar distribution on Nov 12, 2025 also set a $0.12 payout, after which shares declined 1.17%. Today’s announcement continues that pattern of stable, policy-driven distributions.
Market Pulse Summary
This announcement confirms another $0.12 per-share cash distribution within GCV’s stated policy of p...
Analysis
This announcement confirms another $0.12 per-share cash distribution within GCV’s stated policy of paying at least 8% of average net asset value annually. The fund highlights that a substantial part of 2026 payouts may be treated as return of capital, with current estimates at 4% net investment income, 20% capital gains, and 76% return of capital. Investors may want to monitor future notices, final 2026 tax classifications on Form 1099-DIV, and any Board changes to the distribution policy.
Key Terms
net asset value, regulated investment companies, return of capital, net investment income, +4 more
8 terms
net asset valuefinancial
"The average net asset value of the Fund is based on the average net asset values..."
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
regulated investment companiesregulatory
"requirements of the Internal Revenue Code for regulated investment companies."
Regulated investment companies are pooled investment vehicles — such as mutual funds and some exchange-traded funds — that follow specific tax and operating rules so they can pass most investment income directly to shareholders without paying corporate income tax. Think of them as a shared basket that must meet packing and labeling rules to distribute fruit straight to owners; for investors this affects how returns are taxed, how income is paid out, and the fund’s legal protections and reporting obligations.
return of capitalfinancial
"then the amount distributed in excess of the Fund’s earnings would be deemed a return of capital."
Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.
net investment incomefinancial
"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."
Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.
qualified dividend incomefinancial
"may be treated as long-term capital gain or qualified dividend income (or a combination of both)"
Qualified dividend income is dividend money that meets government rules so it’s taxed at the same lower rates as long-term capital gains instead of at higher ordinary income rates. For investors this matters because it increases the after-tax return on dividend-paying stocks or funds—similar to getting a discount on your tax bill if you hold the investment long enough and the payout comes from approved sources.
long-term capital gainfinancial
"treated as long-term capital gain or qualified dividend income..."
A long-term capital gain is the profit you make from selling an investment, like stocks or property, after holding onto it for more than a year. It matters because these gains are often taxed at a lower rate than quick profits, encouraging people to invest and keep their investments longer.
Form 1099-DIVregulatory
"tax treatment for all 2026 distributions in early 2027 via Form 1099-DIV."
Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.
distribution policyfinancial
"The Fund’s distribution policy is subject to modification by the Board of Directors at any time"
A distribution policy is a company’s formal approach to returning cash or other value to shareholders—typically through dividends, share buybacks, or occasional special payments. Like a household deciding how much of its income to save versus spend, this policy tells investors how much income to expect, how predictable those payments are, and how the company balances rewarding owners with keeping money for growth, which affects yield, share price stability, and investor confidence.
AI-generated analysis. Not financial advice.
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).
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.
