Gabelli Healthcare & WellnessRx Trust Declares Second Quarter Distribution of $0.15 Per Share

Rhea-AI Summary

The Gabelli Healthcare & Wellness^Rx Trust (NYSE:GRX) declared a cash distribution of $0.15 per share, payable on June 23, 2021, to shareholders of record by June 16, 2021. The Fund's Board will review the quarterly distribution amounts and may adjust them based on income and capital available. Future adjustments may also occur, aligning with U.S. tax laws. This distribution will primarily stem from capital gains. Shareholders will be notified about the components and tax implications of distributions through Form 1099-DIV in early 2022.

Positive

• Declared a cash distribution of $0.15 per share, signaling commitment to returning value to shareholders.
• Distribution primarily sourced from capital gains, indicating potential strong investment performance.

Negative

• Distribution amount is subject to change, reflecting potential volatility in earnings and market conditions.
• If earnings are insufficient, future distributions may be classified as return of capital, potentially impacting shareholder cost basis.

The Board of Trustees of The Gabelli Healthcare & Wellness^Rx Trust (NYSE:GRX) (the “Fund”) declared a $0.15 per share cash distribution payable on June 23, 2021 to common shareholders of record on June 16, 2021.

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. The Board of Trustees may change the amount of the quarterly distribution at any time. In addition to the quarterly distributions, and in accordance with the minimum distribution requirements of the Internal Revenue Code for regulated investment companies, the Fund may pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year.

Each quarter, the Board of Trustees reviews the amount of any potential distribution and 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. The Fund’s distribution policy is subject to modification or termination 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 up 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 100% from net capital gains on a book basis. The source of the distributions will likely change due to investment activity through the end of the calendar year and this information does not represent what should be reported for tax 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 is available by calling 800-GABELLI (800-422-3554) or visiting www.gabelli.com.

About The Gabelli Healthcare & Wellness^Rx Trust

The Gabelli Healthcare & Wellness^Rx Trust is a diversified, closed-end management investment company with $295 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: GRX
CUSIP – 36246K103

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FAQ

What is the cash distribution amount for GRX in June 2021?

The cash distribution amount for GRX in June 2021 is $0.15 per share.

When will GRX shareholders receive the cash distribution?

GRX shareholders will receive the cash distribution on June 23, 2021.

What date must GRX shareholders be on record to receive the distribution?

Shareholders must be on record by June 16, 2021, to receive the distribution.

What percentage of the 2021 distributions for GRX will come from capital gains?

Approximately 100% of the 2021 distributions will come from net capital gains on a book basis.

How will GRX distribute its earnings in relation to shareholder taxes?

Distributions may include long-term capital gains or qualified dividend income, and shareholders will receive a 1099-DIV for tax reporting.