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

Rhea-AI Summary

The Gabelli Multimedia Trust (NYSE:GGT) has declared a cash distribution of $0.22 per share, payable on March 24, 2021, to shareholders on record as of March 17, 2021. The Fund aims for a minimum annual distribution of 10% of its average net asset value, which fluctuates. The Board reviews potential distributions quarterly, and while the policy is subject to modification, it currently includes components of long-term capital gains and return of capital. Approximately 25% of the current distribution is from net capital gains, with 75% deemed a return of capital.

Positive

• Declared cash distribution of $0.22 per share, affirming the 10% distribution policy.
• Approximately 25% of the distribution stems from net capital gains, indicating profitability.

Negative

• 75% of the distribution is deemed a return of capital, which may signal insufficient earnings to cover distributions.

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 March 24, 2021 to common stock shareholders of record on March 17, 2021.

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, the current distribution paid to common shareholders in 2021 would include approximately 25% from net capital gains and 75% 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 2021 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 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 Multimedia Trust
The Gabelli Multimedia Trust Inc. is a non-diversified, closed-end management investment company with $334 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. (NYSE:GBL).

NYSE: GGT
CUSIP – 36239Q109 

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FAQ

What is the cash distribution amount declared by Gabelli Multimedia Trust (GGT) for March 2021?

Gabelli Multimedia Trust has declared a cash distribution of $0.22 per share for March 2021.

When will the cash distribution for GGT be paid to shareholders?

The cash distribution will be paid on March 24, 2021, to shareholders of record as of March 17, 2021.

What is Gabelli Multimedia Trust's annual distribution policy?

The Fund aims for a minimum annual distribution of 10% of its average net asset value.

What are the components of GGT's distribution for 2021?

Approximately 25% of the distribution is from net capital gains, and 75% is a return of capital.

How are distributions from GGT treated for tax purposes?

Distributions may include long-term capital gains, qualified dividend income, or returns of capital, each subject to different tax treatments.