Gabelli Dividend & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.11 Per Share
May 19 2016 - 8:27AM
Business Wire
The Board of Trustees of The Gabelli Dividend & Income Trust
(NYSE:GDV) (the “Fund”) approved the continuation of its policy of
paying fixed monthly cash distributions. The Board of Trustees
declared cash distributions of $0.11 per share for each of July,
August, and September 2016.
The distribution for July 2016 will be payable on July 22, 2016
to common shareholders of record on July 15, 2016.
The distribution for August 2016 will be payable on August 24,
2016 to common shareholders of record on August 17, 2016.
The distribution for September 2016 will be payable on September
23, 2016 to common shareholders of record on September 16,
2016.
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, which is currently 20% in taxable accounts for
individuals (or zero 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 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 is treated as a reduction in the
shareholder’s cost basis. Under federal tax regulations, some or
all of the return of capital distributed by the Fund may be taxable
as ordinary income in certain circumstances. This may occur when
the Fund has a capital loss carry forward, net capital gains are
realized in a fiscal year, and distributions are made in excess of
investment company taxable income.
Long-term capital gains, qualified dividend income, ordinary
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 as of May 16,
2016, each of the distributions paid to common shareholders in 2016
would include approximately 16% from net investment income, 7% from
net capital gains and 77% would be deemed a return of capital on a
book basis and 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 2016
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 shareholders with taxable accounts will receive
written notification regarding the components and tax treatment for
all 2016 distributions in early 2017 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.
The Gabelli Dividend & Income Trust is a diversified,
closed-end management investment company with $2.2 billion in total
net assets whose primary investment objective is to provide a high
level of total return with an emphasis on dividends and income. The
Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO
Investors, Inc. (NYSE:GBL).
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version on businesswire.com: http://www.businesswire.com/news/home/20160519005865/en/
For The Gabelli Dividend & Income TrustCarter Austin /
Laurissa Martire914-921-5070
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