Ellsworth Growth and Income Fund Ltd. Declares Distribution of $0.41 Per Share 2025 Annual Distribution Totals $0.86 Per Share
MWN-AI** Summary
On November 12, 2025, the Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) announced a cash distribution of $0.41 per share, scheduled for payment on December 30, 2025, to shareholders on record as of November 24, 2025. For shareholders not participating in the Fund’s Automatic Dividend Investment Plan, there is an option to receive the distribution in cash or in shares of the Fund, with an election deadline of December 15, 2025.
The Fund’s annual distribution for 2025 totals $0.86 per share. The number of shares provided under the share option will be calculated based on either the closing market price or the net asset value of the Fund, selecting the lesser value on December 16, 2025. The Fund’s strategy is to ensure annual distributions meet at least 5% of the trailing 12-month average market price or comply with regulatory requirements for regulated investment companies.
The Fund closely monitors its distribution levels, and the Board may decide to adjust these amounts quarterly based on income, capital gains, and the prevailing financial market conditions. Distributions may also include long-term capital gains or qualified dividends, subject to a maximum tax rate of 20% for individuals, with a potential additional 3.8% Medicare surcharge for certain high-income individuals.
Shareholders must be aware that if the Fund's distributions exceed its earnings in a given year, the excess would be considered a return of capital, which is generally not taxable and reduces the shareholder’s cost basis. The estimated breakdown of each distribution will be communicated to shareholders in early 2026 via Form 1099-DIV, with detailed tax implications provided.
Ellsworth Growth and Income Fund, managed by Gabelli Funds, specializes in convertible securities and common stock, with a focus on delivering income and potential capital appreciation.
MWN-AI** Analysis
Ellsworth Growth and Income Fund Ltd. (ECF) has declared a significant cash distribution of $0.41 per share, which will be payable on December 30, 2025. This annual distribution of $0.86 per share highlights the Fund’s commitment to return value to its shareholders amidst varying market conditions. Investors should consider several key factors as they evaluate their investment in ECF.
Firstly, this distribution is in line with the Fund's policy of providing at least 5% of its trailing 12-month average market price or meeting the Internal Revenue Code's minimum distribution requirements. This stable distribution indicates the Fund’s consistent earnings potential, derived primarily from convertible securities and common stock investments. However, it’s crucial for investors to remember that distributions may be treated as returns of capital if the Fund does not generate sufficient income to cover the payouts.
Moreover, the taxable nature of the distribution—regardless of whether shareholders opt for cash or additional shares—requires careful tax planning, especially given the potential implications of capital gains and the Medicare surtax on higher-income individuals.
Investors should also note that the Board of Trustees regularly reviews the Fund's performance and distribution levels. This underscores the importance of being mindful of any adjustments to distribution policies, which could occur in response to fluctuating market conditions or changes in the Fund's net asset value. Given the current economic landscape, prospective investors should weigh the benefits of the distributions against the risks, particularly from the volatility associated with convertible securities in today’s market.
In summary, while ECF offers attractive income opportunities through its distribution policy, potential investors should remain vigilant about the underlying risks, tax implications, and the broader economic and market contexts influencing fund performance.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
RYE, N.Y., Nov. 12, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American:ECF) (the “Fund”) declared a $0.41 per share cash distribution payable on December 30, 2025, to common shareholders of record on November 24, 2025.
Shareholders who are not members of the Fund’s Automatic Dividend Investment Plan will be given the option to receive the distribution either in cash or in beneficial shares of the Fund. The distribution is taxable to shareholders whether or not they choose to receive cash.
The expiration date of the option is December 15, 2025. Shareholders who do not make an election will receive the distribution in beneficial shares.
The number of shares that holders will be entitled to receive under the share option will be determined on December 16, 2025, either on the basis of the closing market price of the Fund’s beneficial shares or its net asset value, whichever is lower on that date.
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 current 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 share-holder’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 2025 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 2025 distributions in early 2026 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 $216 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**
How does the distribution policy of Ellsworth Growth and Income Fund, managed by GAMCO Investors GAMI, impact the long-term income potential and capital appreciation for shareholders?
What considerations should investors take into account regarding the potential tax implications of distributions from Ellsworth Growth and Income Fund under GAMCO Investors GAMI?
In what circumstances could shareholders of Ellsworth Growth and Income Fund, under the management of GAMCO Investors GAMI, face a return of capital versus taxable income in 2025?
How does the performance of Ellsworth Growth and Income Fund, as managed by GAMCO Investors GAMI, influence shareholder decisions about electing cash or shares for distributions?
**MWN-AI FAQ is based on asking OpenAI questions about Ellsworth Growth and Income Fund Ltd. (NYSE: ECF).
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