Gabelli Convertible and Income Securities Fund Declares Distribution of $0.12 Per Share
August 23 2024 - 7:58AM
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 September 23, 2024 to common
stock shareholders of record on September 16, 2024.
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, each of the distributions
paid in 2024 to common shareholders with respect to the Fund’s
fiscal year ending September 30, 2024 would include approximately
8% from net investment income and 92% 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 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 $80 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: GCVCUSIP – 36240B109
THE GABELLI CONVERTIBLE AND INCOME SECURITIES FUND INC
Investor Relations Contact:Laurissa Martire(914)
921-5399lmartire@gabelli.com
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