ECF offers a unique blend of equities and convertible securities, delivering both capital appreciation and a high 6.6% yield for income-focused investors. The fund's price remains sensitive to high-interest rates, which suppresses growth potential; future rate cuts could be a catalyst, but aren't expected soon. ECF consistently trades at a discount to NAV, reflecting reliance on realized gains over net investment income, and underperforms its top holdings on total return.

We review the CEF market valuation and performance through the third week of May and highlight recent market action. CEF sector valuations have tightened, making current entry points less attractive. CLO Equity NAVs have dipped for the second month; however, valuations remain expensive.

RYE, N.Y., May 14, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (the “Fund”) declared a $0.16 per share cash distribution payable on June 23, 2025 to common shareholders of record on June 13, 2025. The $0.16 quarterly distribution is a 23% increase from $0.13 per share, bringing the annual distribution rate to $0.64 from $0.52 per share. The increase follows on the strength of the Fund's market total return of 27% in 2024.

Ellsworth Growth and Income Fund has continued to see strong results since our prior update, even with the fund's discount widening a touch. As rates have stabilized and yields ticked higher in the convertible space, that has helped to drive these better results and income generation in the fund. The relative discount may not seem too appealing at this time, but the absolute discount, along with the potential for some activist pressure, still makes this one appealing.

RYE, N.Y., Feb. 13, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) (the “Fund”) declared a $0.13 per share cash distribution payable on March 24, 2025 to common shareholders of record on March 17, 2025.

We recommend selling equity and buying fixed income due to lower earnings yields in common stock compared to Treasury bonds. Ellsworth Growth and Income Fund offers a 5.60% dividend yield, trades at an 11.97% discount, and holds high-quality, diversified assets. ECF-A preferred shares have an A1 credit rating, a 5.96% yield, and are among the safest on the exchange but lack liquidity.

This month, I've added to 11 different positions, but most of these were related to repurchases after the BlackRock tender offers. While I added to 11 different positions, these were all positions I had already held previously, so there were no new positions this month. In fact, I sold out of a fund to consolidate my holdings and reduce the number of funds held, as I did last month as well.

RYE, N.Y., Nov. 13, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American:ECF) (the “Fund”) declared a $0.14 per share cash distribution payable on December 30, 2024, to common shareholders of record on November 22, 2024.

RYE, N.Y., Aug. 23, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) (the “Fund”) declared a $0.13 per share cash distribution September 23, 2024 to common shareholders of record on September 16, 2024.

ECF has seen its discount narrow since our prior update, but it remains a rather attractive play in the convertible closed-end fund space. The fund has also garnered interest from Saba Capital Management, which has been seen growing its position more recently. The quarterly distribution and 5% minimum annual distribution policy are areas that could use 'some improvement' to potentially narrow the discount.