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

Rhea-AI Summary

The Gabelli Convertible and Income Securities Fund (NYSE:GCV) has declared a $0.12 per share cash distribution payable on December 20, 2024, to shareholders of record on December 13, 2024. This fourth quarter distribution brings the total 2024 distributions to $0.48 per share, which is $0.18 higher than the 8% minimum annual distribution policy based on average NAV. The Fund's NAV has fluctuated between $3.63 and $3.86 over the past four quarters. The distribution may be treated as long-term capital gain or qualified dividend income, subject to applicable tax rates.

Positive

• Distribution of $0.12 per share announced for Q4 2024
• Total annual distribution of $0.48 per share for 2024
• Distribution exceeds minimum policy requirement by $0.18

Negative

• Declining NAV trend from $3.86 (Dec 2023) to $3.75 (Sept 2024)
• Distribution may include return of capital if not fully covered by earnings

RYE, N.Y., Nov. 14, 2024 (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 December 20, 2024 to common stock shareholders of record on December 13, 2024. With this fourth quarter distribution, the total distributions from the Fund for 2024 would equate to $0.48 per share.

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.

We note that 8% of the average net asset value of the Fund would be $0.30 based on the ending net asset values per share as of December 31, 2023, March 31, 2024, June 30, 2024, and September 30, 2024 of $3.86, $3.79, $3.63, and $3.75, respectively. In declaring a distribution of $0.12 per share, the Board of Directors has chosen to distribute $0.18 greater than that called for by the distribution policy. 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. 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:

Laurissa Martire
(914) 921-5399

About Gabelli Convertible and Income Securities Fund

The Gabelli Convertible and Income Securities Fund Inc. is a diversified, closed-end management investment company with $84 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:
Laurissa Martire
(914) 921-5399
lmartire@gabelli.com

FAQ

When will GCV pay its Q4 2024 distribution?

GCV will pay its Q4 2024 distribution of $0.12 per share on December 20, 2024, to shareholders of record as of December 13, 2024.

What is GCV's total distribution for 2024?

GCV's total distribution for 2024 amounts to $0.48 per share.

What is GCV's latest reported net asset value (NAV)?

GCV's NAV was $3.75 as of September 30, 2024.

How does GCV's 2024 distribution compare to its minimum policy?

GCV's 2024 distribution of $0.48 per share exceeds its 8% minimum policy requirement by $0.18.