Gabelli Utility Trust Continues Monthly Distributions, Declares Distributions of $0.05 Per Share
November 16 2023 - 8:25AM
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 $0.05 per share for each of January, February, and
March 2024.
Distribution Month |
Record Date |
Payable Date |
Distribution Per Share |
January |
January 17, 2024 |
January 24, 2024 |
$0.05 |
February |
February 14, 2024 |
February 22, 2024 |
$0.05 |
March |
March 14, 2024 |
March 21, 2024 |
$0.05 |
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 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 2023 would include approximately 7%
from net investment income and 93% 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 2023 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 2023 distributions in early
2024 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:
David Schachter (914) 921-5057
About The Gabelli Utility Trust
The Gabelli Utility Trust is a diversified, closed-end management
investment company with $283 million in total net assets whose
primary investment objective is to seek long-term growth of capital
and income by investing primarily in utility companies involved in
the generation and distribution of electricity, gas, and water. The
Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO
Investors, Inc. (OTCQX: GAMI).
NYSE – GUT CUSIP – 36240A101
THE GABELLI UTILITY TRUSTInvestor Relations Contact: David
Schachter(914} 921-5057dschachter@gabelli.com
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