The Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) is set to deliver larger payouts to its shareholders, marking a notable development this year. The Fund’s Board of Trustees has approved a 20% increase in its quarterly distribution, raising the amount to $0.19 per share from $0.16 per share. This new distribution begins with the December 2025 payment and represents a meaningful vote of confidence in the Fund’s financial performance and its commitment to shareholder returns.
The annualized distribution rate will climb to $0.76 per share, up from $0.64. Behind this decision, Ellsworth highlights its robust 18% net asset value (NAV) total return achieved so far this year, which adds further weight to the increased payout. The timing of the announcement gives existing and potential investors an early heads-up before year-end, and signals that the Fund sees strength in its underlying portfolio.
So, what is Ellsworth Growth and Income Fund? The Fund is a closed-end, diversified investment vehicle, currently sitting at $199 million in total net assets. The Fund focuses primarily on convertible securities and common stock, seeking a balance between income generation and capital appreciation. It is managed by Gabelli Funds, LLC, which operates as a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).
Investors who follow the closed-end fund space know that distribution increases are not handed out lightly. This kind of boost is often a reflection of strong underlying results, and in Ellsworth’s case, a year-to-date NAV return of 18% suggests that the Fund’s approach to managing convertible securities and equities has paid off. Convertible securities, which blend the characteristics of bonds and stocks, offer flexibility to the portfolio, allowing the Fund to seek income without entirely giving up on growth potential. This mix aims to even out risk and reward over the long run.
Management at Gabelli Funds, LLC, has steered Ellsworth through a market environment where income and appreciation have not always come easily. With the current higher interest rate landscape, investors are keen to find reliable vehicles for steady cash flow and closed-end funds like ECF have found renewed attention for their ability to navigate both income-oriented and growth-oriented assets.
Interestingly, Ellsworth pitches its objectives of income and growth as relatively equal in importance. Many funds will tip the scales toward one side or the other, but Ellsworth’s commitment to convertible securities brings a degree of equilibrium between collecting regular payouts and participating in the upside of equity markets. This makes ECF distinct in its design and philosophy, an approach that may appeal to a range of investors—particularly those who value consistency as much as capital appreciation.
For those tracking performance in real time, the NAV total return metric stands as the best indicator of an investment fund’s true output, since it captures both the money earned from investments plus changes in the value of the holdings. An 18% NAV total return is substantial by any measure and helps justify why the Board is comfortable increasing distributions.
To sum up, Ellsworth Growth and Income Fund Ltd. has made a material change that will increase quarterly and annual payouts, backed by solid NAV performance in 2025. For investors, it’s a move that’s as much about showing results as it is reinforcing the dual focus on income and capital growth. The Fund’s unique approach, balanced asset mix, and management pedigree help to set it apart in the closed-end fund landscape. The new distribution will kick in starting December, giving long-term shareholders and newcomers an immediate incentive to revisit ECF’s offering.
