Gabelli Fund Declares $0.12 Per Share June Distribution With 8% Annual Target
The board declared a $0.12 per share cash distribution payable June 23 to shareholders of record June 15. The fund targets an 8% annual payout based on average NAV and the 2026 distributions are estimated at 2% investment income, 25% capital gains and 73% return of capital.
1. Distribution Details
The board of directors approved a cash distribution of $0.12 per share, payable on June 23 to holders of record as of June 15. This marks the quarterly payout consistent with the fund’s schedule, reflecting its commitment to delivering regular income distributions.
2. Composition and Tax Implications
Preliminary accounting indicates each 2026 distribution comprises approximately 2% net investment income, 25% net capital gains and 73% return of capital on a book basis. Return of capital reduces cost basis but is generally non-taxable, while capital gains and qualified dividends may incur federal taxes up to 20% plus a 3.8% Medicare surcharge where applicable.
3. Fund Policy and Profile
The fund aims to pay a minimum annual distribution equaling 8% of its average net asset value, calculated on the last day of each preceding quarter. As a closed-end management investment company with roughly $100 million in net assets, it combines convertible securities and income strategies to pursue current income and capital appreciation.