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

Rhea-AI Summary

The Gabelli Healthcare & WellnessRx Trust (NYSE:GRX) announced a $0.15 per share distribution for Q2 2024, payable on June 21, 2024, to shareholders recorded by June 13, 2024.

The Fund aims for quarterly distributions, with potential adjusting distributions in December based on income and net capital gains.

Distributions may be classified as long-term capital gain, qualified dividend income, or return of capital. Currently, the 2024 distributions are estimated to consist of 3% net investment income, 27% net capital gains, and 70% return of capital.

The Board of Trustees reviews and may adjust the distribution policy based on the Fund’s net asset value and market conditions.

Final tax treatment of distributions will be detailed to shareholders through Form 1099-DIV in early 2025.

Positive

• The Fund declared a $0.15 per share distribution for Q2 2024, providing a regular income stream to shareholders.
• The Board of Trustees reviews the distribution policy quarterly, indicating active management and potential for adjustments based on market conditions.
• Distributions include a mix of net investment income, net capital gains, and return of capital, offering tax-efficient income to shareholders.

Negative

• 70% of the distributions are expected to be a return of capital, which reduces the shareholders' investment cost basis.
• Distributions may be modified or terminated by the Board of Trustees at any time, creating uncertainty for future income.
• A portion of the distribution may be subject to a 3.8% Medicare surcharge for high-income shareholders.

RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- 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 21, 2024 to common shareholders of record on June 13, 2024.

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. 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 current 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 2024 would include approximately 3% from net investment income, 27% from net capital gains and 70% 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 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:

Bethany Uhlein
(914) 921-5546

About The Gabelli Healthcare & Wellness^Rx Trust
The Gabelli Healthcare & Wellness^Rx Trust is a diversified, closed-end management investment company with $249 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: GRX
CUSIP – 36246K103

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST

Investor Relations Contact:
Bethany Uhlein
914.921.5546
buhlein@gabelli.com

FAQ

What is the dividend for Gabelli Healthcare & WellnessRx Trust (GRX) in Q2 2024?

The Gabelli Healthcare & WellnessRx Trust declared a $0.15 per share distribution for Q2 2024, payable on June 21, 2024.

When is the record date for GRX's Q2 2024 distribution?

The record date for the Q2 2024 distribution of Gabelli Healthcare & WellnessRx Trust is June 13, 2024.

What is the composition of GRX's 2024 distributions?

The 2024 distributions are estimated to consist of approximately 3% net investment income, 27% net capital gains, and 70% return of capital.

How does the Gabelli Healthcare & WellnessRx Trust determine its distributions?

The Board of Trustees reviews the Fund’s income, net realized capital gains, and available capital quarterly to determine the distribution amount.

When will shareholders receive tax information for GRX's 2024 distributions?

Shareholders will receive written notification regarding the tax treatment of 2024 distributions in early 2025 via Form 1099-DIV.