Gabelli Dividend & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.09 Per Share
August 22 2013 - 12:25PM
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 $0.09 per share for each of October,
November, and December 2013.
The distribution for October 2013 will be payable on October 24,
2013 to common shareholders of record on October 17, 2013.
The distribution for November 2013 will be payable on November
21, 2013 to common shareholders of record on November 14, 2013.
The distribution for December 2013 will be payable on December
19, 2013 to common shareholders of record on December 13, 2013.
Each quarter, the Board of Trustees reviews the amount of any
potential distribution from the income, 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. The Fund’s
distribution policy is subject to modification by the Board of
Trustees at any time. 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. In addition, for taxable years beginning on or after
January 1, 2013, 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 tax 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 paid-in 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 August 16,
2013, each of the distributions paid to common shareholders in 2013
would include approximately 22% from net investment income and 78%
from net capital gains on a book basis. 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 2013 will be made after year end
and can vary from the monthly estimates. All shareholders with
taxable accounts will receive written notification regarding the
components and tax treatment for all 2013 distributions in early
2014 via Form 1099-DIV.
It should be noted that the Fund’s total assets include capital
from preferred shares issued in prior years. Gabelli Funds, LLC
(the “Investment Adviser”) does not receive a management fee on the
incremental assets attributable to the Fund’s outstanding preferred
shares unless the total return of the net asset value of the common
shares during the year, including distributions and management fee
subject to reduction, exceeds the stated dividend rate or
corresponding swap rate of each particular series of preferred
shares for the fiscal year.
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 non-diversified,
closed-end management investment company with $2.3 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
Investment Adviser is a subsidiary of GAMCO Investors, Inc.
(NYSE:GBL), which is a publicly traded NYSE listed company.
The Gabelli Dividend & Income TrustCarter AustinLaurissa
Martire914-921-5070
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