Gabelli Dividend & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.11 Per Share
February 12 2020 - 7:38AM
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 April,
May, and June 2020.
The distribution for April 2020 will be payable on April 23,
2020 to common shareholders of record on April 16, 2020.
The distribution for May 2020 will be payable on May 21, 2020 to
common shareholders of record on May 14, 2020.
The distribution for June 2020 will be payable on June 23, 2020
to common shareholders of record on June 16, 2020.
Additionally, the Board of Trustees 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.
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, 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 currently
available, each of the distributions paid to common shareholders in
2020 would include approximately 7% from net investment income, 49%
from net capital gains and 44% 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 2020 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 2020 distributions in early 2021 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 $2.7 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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Carter Austin Laurissa Martire (914) 921-5070
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