August 22, 2023: Dividend and Income Fund Releases 2023 Semi-Annual Report

Dividend and Income Fund

DNIF

Seeking Primarily High Current Income and Secondarily Capital Appreciation

June 30, 2023

SEMI-ANNUAL REPORT

• SIGN UP FOR FUND UPDATES

at DividendandIncomeFund.com

TO OUR SHAREHOLDERS

June 30, 2023

Dear Fellow Shareholders:

It is a pleasure to welcome each of our new shareholders to Dividend and Income Fund and to submit this 2023 Semi-Annual Report. The Fund seeks to achieve its primary investment objective of high current income and secondary objective of capital appreciation by invest- ing, under normal circumstances, at least 50% of its total assets in income generating equity securities. These securities may include dividend paying common stocks, convertible securities, preferred stocks, securities of registered investment companies, exchange traded funds organized as investment companies or otherwise, real estate investment trusts, depositary receipts, and other equity related secu- rities. Of course, there can be no assurance that the Fund will achieve its objectives.

5 Stars Awarded by Morningstar

Dividend and Income Fund has received the coveted 5 Star Morning- star Rating as of June 30, 2023. A purely quantitative, backward-looking measure of a fund's past performance, measured from one to five stars, a Morningstar Rating is viewed by Morningstar as helpful to investors in assessing a fund's track record relative to its peers and intended for use as the first step in the fund evaluation process. The top 10% of funds in each fund category receive 5 stars. Calculated at the end of every month, Morningstar Ratings are subject to change without notice1.

Economic and Market Report

According to the minutes of its June 2023 meeting, the Federal Open Market Committee (FOMC) of the Federal Reserve Bank was advised of continued resilience in the economy and reduced downside risks following the resolution of the debt limit in a higher Treasury yield envi- ronment. The FOMC staff noted that the labor market remained tight with the unemployment rate at 3.7%. The FOMC staff also reported that consumer price inflation remained elevated - the increase in the price index for personal consumption expenditures (PCE) was 4.4% over the 12 months ending in April 2023 and the 12-month change ending in April 2023 in the consumer price index (CPI) was 4.0%. The FOMC staff highlighted average hourly earnings rising 4.3% over the 12 months ending in May 2023. In the FOMC staff's view real GDP appeared to be increasing modestly in the second quarter of 2023 following its stronger first quarter of 2023 gain.

Turning to financial markets, the FOMC minutes recorded that broad equity prices rose, although the outperformance was concentrated

in a handful of companies with a large market capitalization, noting outperformance by more cyclical sectors. Investor sentiment about the banking sector improved as perceived risks regarding regional banks appeared to have receded. In domestic credit markets, borrowing costs for businesses, households, and municipalities were reported by the staff to have increased notably, while interest rates on newly originated bank loans to businesses and households in the first quarter of 2023 rose further above their peaks from the previous tightening cycle, and yields on leveraged loans also rose, reaching levels close to their peak at the onset of the pandemic.

The economic forecast prepared by the staff for the June 2023 FOMC meeting continued to assume that the effects of the expected further tightening in bank credit conditions, amid already tight financial con- ditions, would lead to a mild recession starting later this year, followed by a moderately paced recovery. Real GDP was projected to decelerate in the second and third quarters of 2023 before declining modestly in both the fourth quarter of this year and first quarter of next year. Accordingly, our investing outlook continues to be cautious, and investors might anticipate periods of market volatility and price weakness.

Investment Strategy and Returns

In view of these economic and market developments, the Fund's strategy in the first half of 2023 was to seek companies with increasing revenue, superior returns on assets and moderate debt, generating free cash flow, and trading with reasonable valuations. Generally, the Fund purchased and held income generating equity securities of companies that appeared to be profitable, growing, and conservatively valued across a broad array of industries in seeking to achieve its primary investment objective of high current income and secondary objective of capital appreciation and sold investments that appeared to have appreciated to levels reflecting full or over-valuation.

In the six months ended June 30, 2023, the Fund's net investment income, net realized gain on investments, and unrealized appreciation on investments were, respectively, $426,068, $10,953,340 and $5,906,614, which contributed materially to the Fund's net asset value return of 9.73%, including the reinvestment of dividends and dilution occurring under the Fund's dividend reinvestment plan (DRIP). Profitable sales in the period were made of, among others, shares of Tractor Supply Company in the building materials, hardware, garden supply, and mobile home dealers industry. Losses were taken

1 As of June 30, 2023, the Fund received a 5 star Morningstar Rating for the 3 and 10 year periods, and overall, and a 4 star Morningstar Rating for the 5 year period. The Morningstar Rating is provided by Morningstar, Inc. The Morningstar Rating for funds, or "star rating," is calculated for funds with at least a three- year history. (Exchange-traded funds and open-end mutual funds are considered a single population for comparative purposes.) According to Morningstar, Inc. it is calculated-based on a Morningstar Risk Adjusted Return measure that accounts for variation in a fund's monthly excess performance (excluding the effect of sales charges, if any), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each fund category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. Although the Fund believes the data gathered from this third-party source is reliable, it does not review such information and cannot warrant it to be accurate, complete, or timely. Neither the Fund nor its investment manager provided any compensation directly or indirectly in connection with obtaining or using this third-party rating.

DIVIDEND AND INCOME FUND	Semi-Annual Report 2023	1

TO OUR SHAREHOLDERS

on, among others, British American Tobacco p.l.c. in the tobacco products industry. The Fund's holdings of UnitedHealth Group Incorporated in the insurance carriers industry contributed to unrealized depreciation during the period. At the same time, the Fund benefited from unrealized appreciation from its investment in Lam Research Corporation in the industrial and commercial machinery and computer equipment industry.

The Fund's market return for the first half of 2023, also including the reinvestment of dividends and DRIP dilution, was 6.54%. Generally, the Fund's total return on a market value basis will be lower than total return on a net asset value basis in periods when there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. For comparison, in the same period, the S&P 500 Index total return was 22.94%, which is unmanaged and does not reflect fees and expenses, nor is it available for direct investment. At June 30, 2023, the Fund's portfolio included securities of over 50 different issuers, with the top ten securities amounting to approximately 44% of net assets. At that time, the Fund's investments totaled approximately $245 million on net assets of approximately $223 million, with leverage of approximately $22 million. As the Fund pursues its primary investment objective of seeking high current income, with capital appreciation as a secondary objective, these holdings and allocations are subject to change at any time.

Quarterly Distributions

On June 1, 2023, the Fund declared a distribution of $0.25, its second quarterly distribution of the 2023 year. The quarterly distribution reflects the Fund's current distribution policy to provide shareholders with a relatively stable cash flow per share. This policy did not have a material effect on the Fund's investment strategy and did not result in returns of capital that reduced the Fund's per share net asset value in the first half of 2023. There is no guarantee that the Fund's current distribution policy will reduce or eliminate the Fund's market price discount to its net asset value per share and the Fund's trustees have no fiduciary duty to take action, or to consider taking any action, to narrow any such discount. The distribution policy may be changed or discontinued without notice.

As of June 1, 2023, and based on the Fund's results and estimates for the second quarter, the distribution of $0.25 per share would include approximately 0%, 100%, and 0% from net investment income, capital gains, and return of capital, respectively. Shareholders should not draw any conclusions about the Fund's investment performance from the amount of this distribution. The amounts and sources of distributions reported are only estimates based on book basis earn- ings, are likely to change over time, and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the entirety of its fiscal year and may be subject to

June 30, 2023

changes based on tax regulations. The amounts and sources of distributions year-to-date may be subject to additional adjustments. The Fund intends to send shareholders a Form 1099- DIV for the calendar year that will instruct how to report these distributions for federal income tax purposes.

On December 8, 2022, the Fund announced that it anticipates that its quarterly distribution amount will remain at $0.25 per share for each quarter of 2023. Distributions may be paid from net investment income, net realized capital gains, or return of capital, or a combination thereof. To the extent that the Fund has estimated that it has distributed more than such income and gains, the distribution may be a return of capital. A return of capital may occur, for example, when money invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." Additionally, a return of capital is not taxable; rather, it reduces the tax basis of a shareholder's Fund shares, thereby increasing potential gain or reducing potential loss on the shareholder's subsequent sale of those shares.

Dividend Reinvestment Plan

For those shareholders who are currently receiving the Fund's quarterly distributions in cash but are interested in adding to their account through the Fund's dividend reinvestment plan (DRIP), we encourage you to review the plan set forth later in this document and contact the Fund's transfer agent, who will be pleased to assist you with no obligation on your part.

Fund Website

The Fund's website, www.DividendandIncomeFund.com, provides investors with investment information, news, and other material about the Fund. The website also has links to U.S. Securities and Exchange Commission ("SEC") filings, performance, tax, and daily net asset value reporting. You are invited to use this resource to learn more about the Fund.

Management's Long Term Focus

We thank you for investing in the Fund and share your enthusiasm for its potential, as evidenced by the fact that affiliates of the Investment Manager own approximately 12% of the Fund's outstanding shares pursuant to the Fund's governing documents that permit ownership of more than 4.99% of the Fund's outstanding shares only with the prior approval of the Fund's Board of Trustees. We look forward to serving your investment needs over the years ahead.

Sincerely,

Thomas B. Winmill

President and Portfolio Manager

2	Semi-Annual Report 2023	DIVIDEND AND INCOME FUND

PORTFOLIO ANALYSIS

TOP TEN	June 30, 2023

SECURITY HOLDINGS

1. Steel Dynamics, Inc. (8%)
2. AutoZone, Inc. (7%)
3. Credit Acceptance Corporation (5%)
4. Essent Group Ltd. (4%)
5. U.S. Bancorp (4%)
6. Westlake Corporation (4%)
7. Asbury Automotive Group, Inc. (3%)
8. Mueller Industries, Inc. (3%)
9. Dillard's Inc. (3%)
10. UnitedHealth Group, Inc. (3%)

June 30, 2023

TOP TEN	June 30, 2023

INDUSTRIES

1. Primary Metal (14%)
2. Insurance Carriers (12%)
3. Non-DepositoryCredit Institutions (10%)
4. Automotive Dealers and Gasoline Service Stations (10%)
5. Chemical and Allied Products (8%)
6. Depository Institutions (8%)
7. Metal Mining (6%)
8. Services - Help Supply Services (6%)
9. Holding and other Investment Offices (5%)
10. Electronic and other Electrical Equipment and Components, except Computer Equipment (5%)

Top ten security holdings and industries are shown for informational purposes only as an approximate percentage of net assets and are subject to change. Industry classifications are based on Standard Industrial Classification codes. The above portfolio information should not be considered as a recommendation to purchase or sell a particular security and there is no assurance that any securities will remain in or out of the Fund.

SECURITY HOLDINGS

by Sector on June 30, 2023*

Financial Services (27%)

Industrials (21%)

Basic Materials (20%)

Consumer Cyclical (17%)

Healthcare (9%)

Technology (5%)

Real Estate (5%)

Communication Services (5%)

* Source: Morningstar, Inc. Based on approximate percentages of net assets and may not add up to 100% due to leverage, cash or other assets, rounding, and other factors. Allocations of less than 1% in the aggregate are not shown. Allocations are subject to change.

DIVIDEND AND INCOME FUND	Semi-Annual Report 2023	3

SCHEDULE OF PORTFOLIO INVESTMENTS		June 30, 2023 (Unaudited)
			Financial Statements
Common Stocks (104.17%)
Shares	Value	Shares	Value

Automotive Dealers and Gasoline Service Stations (9.95%)

Asbury Automotive Group, Inc. (a)	29,500	$ 7,092,390
AutoZone, Inc. (a)	6,050	15,084,828
		22,177,218
Automotive Repair, Services, and Parking (3.17%)	763,416
U-Haul Holding Company	13,800
U-Haul Holding Company Series B	124,200	6,293,214
Non-Voting
		7,056,630
Chemical and Allied Products (8.42%)
LyondellBasell Industries N.V.	35,000	3,214,050
Class A
Olin Corporation	41,000	2,106,990
Pfizer Inc.	138,500	5,080,180
Westlake Chemical Corporation	70,000	8,362,900
		18,764,120
Communications (1.87%)	25,000	4,163,750
Nexstar Media Group, Inc.
Depository Institutions (7.69%)	122,000	3,295,220
Ally Financial Inc.
Barclays PLC	615,000	4,833,900
U.S. Bancorp	272,500	9,003,400
		17,132,520
Electronic and Other Electrical Equipment and Components,
except Computer Equipment (4.79%)	36,500	5,691,810
Atkore Inc. (a)
Skyworks Solutions, Inc.	45,000	4,981,050
		10,672,860
General Merchandise Stores (2.97%)	20,300	6,623,484
Dillard's, Inc. (a)
Home Furniture, Furnishings, and Equipment Stores (2.70%)
Williams-Sonoma, Inc.	48,000	6,006,720
Industrial and Commercial Machinery
and Computer Equipment (2.79%)	9,700	6,235,742
Lam Research Corporation
Insurance Carriers (12.29%)	9,600	4,265,184
Elevance Health, Inc.
Essent Group Ltd.	200,000	9,360,000
Fidelity National Financial, Inc.	55,000	1,980,000
NMI Holdings, Inc. (a)	205,000	5,293,100
UnitedHealth Group Incorporated	13,500	6,488,640
		27,386,924

See notes to financial statements.

Metal Mining (6.23%)	74,000	$ 4,415,580
BHP Group Limited
B2Gold Corp.	1,335,000	4,765,950
Rio Tinto plc	73,500	4,692,240
		13,873,770
Non-Depository Credit Institutions (10.16%)	11,682,390
Credit Acceptance Corporation (a)	23,000
Discover Financial Services	50,000	5,842,500
Enova International, Inc. (a)	96,000	5,099,520
		22,624,410
Oil and Gas Extraction (0.28%)	26,743	620,170
Woodside Energy Group Ltd.
Primary Metal (13.55%)	30,700	5,708,051
Encore Wire Corporation
Mueller Industries, Inc. (a)	80,700	7,043,496
Steel Dynamics, Inc.	160,000	17,428,800
		30,180,347
Security and Commodity Brokers, Dealers,
Exchanges, and Services (1.46%)	4,700	3,248,358
BlackRock, Inc.
Services - Computer Programming, Data Processing (2.69%)
Alphabet Inc. Class A (a)	50,000	5,985,000
Services - Help Supply Services (5.61%)	4,473,920
AMN Healthcare Services, Inc. (a)	41,000
Kforce Inc.	50,000	3,133,000
Robert Half International Inc.	65,000	4,889,300
		12,496,220
Transportation Equipment (3.72%)	40,000	4,140,000
THOR Industries, Inc.
Wabash National Corporation	162,000	4,153,680
		8,293,680
Wholesale Trades - Durable Goods (3.83%)	5,936,274
BlueLinx Holdings Inc. (a)	63,300
Pool Corporation	6,900	2,585,016
		8,521,290
Total common stocks (Cost $172,277,365)	232,063,213

4	Semi-Annual Report 2023	Dividend and Income Fund