Gabelli Multimedia Trust 10% Distribution Policy Reaffirmed and Declared Fourth Quarter Distribution of $0.22 Per Share

Rhea-AI Summary

The Gabelli Multimedia Trust (NYSE:GGT) Board has reaffirmed its 10% distribution policy and declared a $0.22 per share cash distribution for Q4 2024, payable December 20 to shareholders of record on December 13. The total distributions for 2024 would amount to $0.88 per share. The Board chose to distribute $0.52 more than required by the policy, based on average NAV calculations. The Fund's NAV per share has fluctuated between $3.32 and $3.73 during 2024. The distribution may be treated as long-term capital gain or qualified dividend income for tax purposes.

Positive

• Distribution exceeds policy requirements by $0.52 per share
• Maintained consistent quarterly distribution policy
• Total annual distribution of $0.88 per share for 2024

Negative

• NAV declined from $3.73 to $3.32 during Q2 2024
• Distribution may include return of capital if not supported by sufficient earnings

Insights

Financial Analyst

This dividend distribution announcement is significant for investors, with the Fund declaring a $0.22 per share quarterly payout, totaling $0.88 for 2024. The distribution notably exceeds the 10% policy requirement by $0.52, demonstrating strong commitment to shareholder returns. However, investors should note that the Fund's NAV has shown volatility, fluctuating between $3.32 and $3.73 throughout 2024.

The tax implications are particularly important - distributions may be classified as long-term capital gains or qualified dividends, subject to a maximum 20% federal tax rate, plus potential 3.8% Medicare surcharge. Current accounting indicates distributions are 100% from paid-in capital, which could impact shareholders' cost basis calculations.

RYE, N.Y., Nov. 14, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Multimedia Trust Inc. (NYSE:GGT) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.22 per share cash distribution payable on December 20, 2024 to common stock shareholders of record on December 13, 2024.   With this fourth quarter distribution, the total distributions from the Fund for 2024 would equate to $0.88 per share.

The Fund intends to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or capital available.

We note that 10% of the average net asset value of the Fund would be $0.36 based on the ending net asset values per share as of December 31, 2023, March 31, 2024, June 30, 2024, and September 30, 2024 of $3.73, $3.57, $3.32, and $3.73, respectively. In declaring a distribution of $0.22 per share, the Board of Directors has chosen to distribute $0.52 greater than that called for by the distribution policy. The net asset value per share fluctuates daily.

The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. The Fund’s distribution policy is subject to modification by the Board of Directors 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 2024 would be deemed 100% from paid-in 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 2024 will be made after year end and can vary from the quarterly 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 2024 distributions in early 2025 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, call:

Carter Austin
(914) 921-5475

About The Gabelli Multimedia Trust
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with $198 million in total net assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE: GGT
CUSIP – 36239Q109

Investor Relations Contact:
Carter Austin
(914) 921-5475
caustin@gabelli.com

FAQ

What is Gabelli Multimedia Trust's (GGT) Q4 2024 distribution amount?

Gabelli Multimedia Trust (GGT) declared a Q4 2024 distribution of $0.22 per share, payable on December 20, 2024.

What is GGT's total distribution for 2024?

GGT's total distributions for 2024 amount to $0.88 per share.

What is GGT's distribution policy percentage?

GGT maintains a 10% distribution policy based on the average net asset value of the Fund within a calendar year.

What was GGT's NAV range during 2024?

GGT's NAV fluctuated between $3.32 and $3.73 per share during 2024, with the lowest value recorded on June 30, 2024.