Gabelli Dividend & Income Trust Continues Monthly Distributions, Declares Distributions of $0.11 Per Share

Rhea-AI Summary

The Gabelli Dividend & Income Trust (NYSE:GDV) has confirmed its commitment to fixed monthly cash distributions of $0.11 per share for July, August, and September 2022. The record and payable dates for these distributions are July 15 and 22, August 17 and 24, and September 16 and 23, respectively. The Board of Trustees will continuously monitor distribution levels based on the fund's net asset value and market conditions. Additionally, if necessary, an adjusting distribution may occur in December to meet Internal Revenue Code requirements.

Positive

• Continuation of fixed monthly cash distributions at $0.11 per share for three months.
• Potential for additional adjusting distribution in December if earnings exceed monthly distributions.

Negative

• The distribution policy is subject to modification and may not be guaranteed in the future.
• If earnings do not meet distribution levels, excess payments may be deemed return of capital, potentially impacting shareholder cost basis.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $0.11 per share for each of July, August, and September 2022.

Distribution Month	Record Date	Payable Date	Distribution Per Share
July	July 15, 2022	July 22, 2022	$0.11
August	August 17, 2022	August 24, 2022	$0.11
September	September 16, 2022	September 23, 2022	$0.11

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 financial market environment. If necessary, the Fund will pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The Fund’s distribution policy is subject to modification 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 whose income 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 shareholder’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. Based on the accounting records of the Fund currently available, each of the distributions paid to common shareholders in 2022 would include approximately 10% from net investment income, 89% from net capital gains and 1% would be deemed a return of capital on a book basis. This does not represent information for tax reporting purposes. 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 2022 will be made after year end and can vary from the monthly 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 2022 distributions in early 2023 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, visit www.gabelli.com or call:

Carter Austin
(914) 921-5475

About The Gabelli Dividend & Income Trust

The Gabelli Dividend & Income Trust is a diversified, closed-end management investment company with $2.6 billion in total net assets whose primary investment objective is to provide a high level of total return with an emphasis on dividends and income. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE – GDV
CUSIP – 36242H104

View source version on businesswire.com: https://www.businesswire.com/news/home/20220513005259/en/

Carter Austin

(914) 921-5475

Source: The Gabelli Dividend & Income Trust

FAQ

What is the distribution amount for GDV in July, August, and September 2022?

The Gabelli Dividend & Income Trust declared a distribution of $0.11 per share for each month.

What are the record and payable dates for the distributions of GDV?

The record dates are July 15, August 17, and September 16, with payable dates on July 22, August 24, and September 23, 2022.

Will there be an adjusting distribution for GDV in December?

Yes, the Board of Trustees may declare an adjusting distribution in December if income exceeds the monthly distributions.

How is the distribution from GDV treated for tax purposes?

Distributions may be treated as long-term capital gains or qualified dividend income, subject to federal income tax rates.

What happens if GDV does not generate sufficient earnings?

If earnings are insufficient, the excess distribution may be considered a return of capital, impacting shareholders' cost basis.