High Income Securities Fund Declares Distributions For First Quarter of 2026

On January 2, 2026, the High Income Securities Fund (NYSE: PCF) announced the declaration of its next three monthly distributions as part of its managed distribution plan. This plan aims to provide consistent monthly returns to common stockholders at an annual rate of 10%. Based on the net asset value of $6.96 per share as of December 31, 2025, the announced distributions are set at $0.0580 for each of the months of January, February, and March 2026. The specific record and payable dates for these distributions are as follows: January 20, 2026, payable on January 30, 2026; February 17, 2026, payable on February 27, 2026; and March 17, 2026, payable on March 31, 2026.

The Fund's managed distribution plan allows for distributions even when sufficient investment income is not available, utilizing long-term capital gains and/or return of capital as necessary. In cases where net investment income and net realized capital gains exceed the distributions, the Fund may opt to make an additional year-end distribution. However, stockholders should not infer the Fund’s investment performance from the distribution amounts alone, as the Board retains the right to amend or terminate the plan at any time, which may influence the market price of the Fund's common shares.

The Board will conduct periodic reviews to assess the fixed rate of distributions and determine any necessary adjustments. Shareholders can expect further details on the composition of each distribution, with tax reporting provided via a Form 1099-DIV at the end of the year. For further inquiries, Thomas Antonucci is available via email at tantonucci@bulldoginvestors.com.

As the High Income Securities Fund (NYSE: PCF) commences its monthly distributions for the first quarter of 2026, investors should carefully consider several implications of the managed distribution plan announced by the Fund's Board of Trustees. The declaration of three monthly distributions at a consistent rate of $0.0580, translating to an annualized rate of 10% based on a net asset value of $6.96, is designed to provide a reliable income stream to shareholders. However, potential investors must assess the sustainability of these distributions in the context of the Fund’s underlying performance.

The managed distribution plan outlines that, in years where net investment income is insufficient, the Fund may resort to distributing long-term capital gains or even return of capital. While this structure can enhance immediate income for shareholders, it poses a risk: relying on return of capital could erode investors’ principal investment over time, leading to potential long-term drawbacks.

It is also vital to keep an eye on the Board's capacity to modify or terminate the distribution plan without prior notice. Investors should be aware that changes in the distribution policy could directly impact the market price of the Fund's shares, resulting in volatility in the short term.

Furthermore, although the announced distribution provides a beacon of stability, investors should conduct a thorough analysis of the Fund's overall performance metrics, including its net investment income and capital gains, before making investment decisions. Given that actual distribution composition will be communicated via Form 1099-DIV post fiscal year-end, maintaining awareness of these details can offer insights into the Fund’s financial health.

In summary, while the High Income Securities Fund appears attractive for income-focused investors, prudent analysis of its underlying financial stability and distribution practices is essential to grasp the potential risks involved fully.