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

Rhea-AI Summary

The Gabelli Multimedia Trust (NYSE:GGT) reaffirmed its 10% distribution policy with a $0.22 per share cash distribution for the second quarter of 2024. This distribution will be paid on June 21, 2024, to shareholders of record on June 13, 2024.

The Fund aims to distribute a minimum of 10% of its average net asset value annually, based on the average values of the last four quarters. The Board of Directors reviews the distribution each quarter, considering the Fund's net asset value and market conditions. Distributions can be modified at any time and may comprise long-term capital gains, qualified dividend income, or a return of capital.

For 2024, all distributions are currently deemed to be from paid-in capital. This status may affect tax treatments for shareholders, who will receive detailed tax information in early 2025. The Board continues to explore strategic opportunities in the equity markets.

Positive

• Affirmed 10% distribution policy ensures consistent returns for shareholders.
• Declared $0.22 per share cash distribution providing prompt returns.
• Board actively evaluates strategic opportunities to enhance Fund value.
• Minimum annual distribution of 10% of average net asset value shows commitment to shareholders.
• Distributions include potential tax-advantaged components like long-term capital gains and qualified dividend income.

Negative

• Distributions may be treated as a return of capital, reducing shareholders' cost basis.
• Declared distributions do not guarantee dividend yield or total return on investment.
• There is no certainty that the distribution policy will continue unchanged.
• Potential tax implications including a 3.8% Medicare surcharge for high-income individuals.
• Possible modification of distribution policy by the Board can affect future payouts.

RYE, N.Y., May 16, 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 June 21, 2024 to common stock shareholders of record on June 13, 2024.

Additionally, the Board of Directors 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.

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. The average net asset value of the Fund is based on the average net asset values as of the last day of the four preceding calendar quarters during the year. The net asset value per share fluctuates daily.

Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the current 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 $177 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

THE GABELLI MULTIMEDIA TRUST INC.
Investor Relations Contact:
Carter Austin
(914) 921-5475
caustin@gabelli.com

FAQ

What is the latest distribution declared by Gabelli Multimedia Trust?

Gabelli Multimedia Trust declared a $0.22 per share cash distribution payable on June 21, 2024, to shareholders of record on June 13, 2024.

What is the distribution policy of Gabelli Multimedia Trust?

The Gabelli Multimedia Trust aims for a minimum annual distribution of 10% of the average net asset value based on the last four quarters.

What is the ticker symbol for Gabelli Multimedia Trust?

The ticker symbol for Gabelli Multimedia Trust is GGT.

How are Gabelli Multimedia Trust distributions taxed?

Distributions may include long-term capital gains, qualified dividend income, or a return of capital, affecting tax treatments. High-income individuals might face a 3.8% Medicare surcharge.

Will Gabelli Multimedia Trust's distribution policy remain the same?

There is no certainty that the distribution policy will remain unchanged as it is subject to modification by the Board of Directors.