Gabelli Global Utility & Income Trust Continues Monthly Distributions, Declares Distributions of $0.10 Per Share

Rhea-AI Summary

The Board of Trustees of Gabelli Global Utility & Income Trust (NYSE American: GLU) announced the continuation of its fixed monthly cash distributions, declaring $0.10 per share for July, August, and September 2024. These distributions maintain the Fund's policy of paying a minimum annual distribution of 6% of the initial public offering price of $20.00 per share. The Board reviews the distribution amount quarterly, considering the Fund's net asset value and market conditions. If necessary, an adjusting distribution may be paid in December. The Fund's distribution rate is not indicative of dividend yield or total return. The distributions for 2024 are expected to include 3% from net investment income, 1% from net capital gains, and 96% as a return of capital. Shareholders will receive tax-related information regarding these distributions in early 2025.

Positive

• Continuation of fixed monthly cash distributions of $0.10 per share for July, August, and September 2024.
• Consistent distribution of 6% of the initial public offering price annually.
• Quarterly review of distribution amounts to align with net asset value and market conditions.
• Potential for an adjusting distribution in December to meet minimum distribution requirements.

Negative

• 96% of the 2024 distribution is expected to be a return of capital, which may not be favorable for long-term investors.
• Distributions are not indicative of the dividend yield or total return on investment in the Fund.
• Potential for modification of the distribution policy by the Board of Trustees at any time, adding uncertainty for investors.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE American: GLU) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $0.10 per share for each of July, August, and September 2024.

Distribution Month	Record Date	Payable Date	Distribution Per Share
July	July 17, 2024	July 24, 2024	$0.10
August	August 16, 2024	August 23, 2024	$0.10
September	September 16, 2024	September 23, 2024	$0.10

Under the Fund’s initial distribution policy, the Fund has paid a minimum annual distribution of 6% of the initial public offering price of $20.00 per share (a distribution of $0.10 per share each month).

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 2024 would include approximately 3% from net investment income, 1% from net capital gains and 96% 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 2024 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 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:

Adam Tokar
(914) 457-1079

About The Gabelli Global Utility & Income Trust
The Gabelli Global Utility & Income Trust is a diversified, closed-end management investment company with $132 million in total net assets whose primary investment objective is to seek a consistent level of after-tax total return for its investors with an emphasis on tax-advantaged dividend income under current tax law. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE American – GLU
CUSIP – 36242L105

Investor Relations Contact:
Adam Tokar
(914) 457-1079
atokar@gabelli.com

FAQ

What is the distribution amount declared by Gabelli Global Utility & Income Trust (GLU) for July, August, and September 2024?

The distribution amount declared is $0.10 per share for each of the months July, August, and September 2024.

How often does Gabelli Global Utility & Income Trust (GLU) review its distribution policy?

The Board of Trustees reviews the distribution policy quarterly.

What percentage of the 2024 distribution from Gabelli Global Utility & Income Trust (GLU) is expected to be a return of capital?

Approximately 96% of the 2024 distribution is expected to be a return of capital.

When will shareholders receive tax-related information for the 2024 distributions from Gabelli Global Utility & Income Trust (GLU)?

Shareholders will receive tax-related information in early 2025 via Form 1099-DIV.