Gabelli Utility Trust Continues Monthly Distributions, Declares Distributions of $0.05 Per Share
The Gabelli Utility Trust (NYSE:GUT) announced the continuation of its fixed monthly cash distributions, with $0.05 per share declared for July, August, and September 2024. These distributions will be payable on July 24, August 23, and September 23, respectively.
The Board of Trustees will review the Fund's financials quarterly and may adjust distributions if needed, particularly in December.
The Fund's shares trade at a premium to net asset value, which the Board believes may not be sustainable. For 2024, approximately 99% of distributions are expected to be a return of capital.
Shareholders will receive detailed tax information in early 2025. The Fund has consistently paid monthly distributions since October 1999.
- Continuation of fixed monthly cash distributions.
- Distributions of $0.05 per share declared for three consecutive months.
- Consistent monthly distributions since October 1999.
- Potential for additional income and net realized capital gains distribution in December.
- Shares trade at a premium to net asset value, which may not be sustainable.
- Approximately 99% of 2024 distributions expected to be a return of capital.
- Distribution policy subject to change, no guarantee of continuation.
- Reinvestment of distributions occurs at a premium to net asset value.
RYE, N.Y., May 16, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of
Distribution Month | Record Date | Payable Date | Distribution Per Share |
July | July 17, 2024 | July 24, 2024 | |
August | August 16, 2024 | August 23, 2024 | |
September | September 16, 2024 | September 23, 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.
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. The Gabelli Utility Trust has paid a distribution to shareholders every month since October 1999.
The Fund’s shares are currently trading at a premium to net asset value. The Board of Trustees believes that the premium at which the Fund shares trade relative to net asset value is not likely to be sustainable. Shareholders participating in the Fund’s dividend reinvestment plan should note that at the current market price, the reinvestment of distributions occurs at a premium to net asset value.
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
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
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:
David Schachter
(914) 921-5057
About The Gabelli Utility Trust
The Gabelli Utility Trust is a diversified, closed-end management investment company with
NYSE – GUT
CUSIP – 36240A101
THE GABELLI UTILITY TRUST
Investor Relations Contact:
David Schachter
(914} 921-5057
dschachter@gabelli.com
FAQ
What is the monthly distribution for Gabelli Utility Trust (GUT) in July 2024?
When are the distribution dates for Gabelli Utility Trust (GUT) in August 2024?
What percentage of distributions for Gabelli Utility Trust (GUT) in 2024 is expected to be a return of capital?
Has Gabelli Utility Trust (GUT) been consistent with monthly distributions?