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

Rhea-AI Summary

The Board of Trustees of The Gabelli Dividend & Income Trust (GDV) has approved fixed monthly cash distributions of $0.11 per share for April, May, and June 2021. Key dates include a record date of April 16, payable on April 23. Further distributions for May and June follow a similar pattern. The Board continues to assess strategic opportunities in the equity markets, and a possible adjusting distribution may occur in December based on the Fund's performance. Approximately 17% of the distributions will come from net investment income, while 83% will stem from net capital gains.

Positive

• Approval of fixed monthly cash distributions of $0.11 per share enhances investor confidence.
• Approximately 83% of distributions are from net capital gains, indicating potential strong performance.

Negative

• Future distributions are subject to the Board's discretion, introducing uncertainty.
• If earnings do not meet the distribution level, excess payments may be treated as return of capital, affecting shareholder cost basis.

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 April, May, and June 2021.

Distribution Month	Record Date	Payable Date
April	April 16, 2021	April 23, 2021
May	May 14, 2021	May 21, 2021
June	June 16, 2021	June 23, 2021

Additionally, the Board of Trustees continues to evaluate potential strategic opportunities for the Fund in what we believe to be an attractive environment to invest in the broader equity markets.

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 2021 would include approximately 17% from net investment income and 83% from net capital gains 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 2021 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 2021 distributions in early 2022 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. More information regarding the Fund’s distribution policy and other information about the Fund is available by calling 800-GABELLI (800-422-3554) or visiting www.gabelli.com.

About The Gabelli Dividend & Income Trust
The Gabelli Dividend & Income Trust is a diversified, closed-end management investment company with $2.7 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

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FAQ

What are the cash distribution amounts for GDV in 2021?

The Gabelli Dividend & Income Trust (GDV) declared cash distributions of $0.11 per share for April, May, and June 2021.

When are the record and payable dates for GDV distributions?

Record dates are April 16, May 14, and June 16, 2021, with payable dates on April 23, May 21, and June 23, 2021, respectively.

How is the distribution composed for GDV?

Approximately 17% of the distributions in 2021 will come from net investment income and 83% from net capital gains.

Will there be adjusting distributions for GDV in December 2021?

Yes, the Board may declare an adjusting distribution in December based on excess income and net realized capital gains.

What should shareholders know about GDV's return of capital?

If the Fund does not generate sufficient earnings, distributions exceeding earnings are treated as return of capital, generally not taxable.