GABELLI DVEND TRST : Gabelli Dividend & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.08 Per Share, an Increase from $0.07 Per Share in Second Quarter 2011
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 authorized an increase
in the monthly cash distribution from $0.07 per share to $0.08 per share
in the third quarter 2011. The Board of Trustees declared cash
distributions of $0.08 per share for each of July, August, and September
2011, which represents a 14% increase over the previous months'
distribution.
The distribution for July 2011 will be payable on July 22, 2011 to
common shareholders of record on July 15, 2011.
The distribution for August 2011 will be payable on August 24, 2011 to
common shareholders of record on August 17, 2011.
The distribution for September 2011 will be payable on September 23,
2011 to common shareholders of record on September 16, 2011.
Each quarter, the Board of Trustees reviews the amount of any potential
distribution and 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.
A portion of the distribution may be treated as long-term capital gain
and qualified dividend income for individuals, each subject to the
maximum federal income tax rate, which is currently 15% in taxable
accounts for individuals. If the Fund does not generate sufficient
earnings from dividends and interest received and net realized capital
gains 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 investment income and net realized capital gains 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 May 16, 2011, each of the
distributions paid in 2011 would include approximately 26% from net
investment income, 20% from net capital gains and 54% from paid-in
capital. 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 2011 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 2011 distributions in
early 2012 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.
The Gabelli Dividend & Income Trust is a non-diversified, closed-end
management investment company with $2.0 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.
For Gabelli Dividend & Income Trust Carter Austin,
Laurissa Martire, 914-921-5070
The Gabelli Dividend & Income Trust (the Fund) is a diversified, closed-end management investment company. The Fundâs investment objective is to seek a high level of total return with an emphasis on dividends and income. Under normal market conditions, the Fund invests at least 80% of its assets in dividend paying or other income-producing securities. In addition, under normal market conditions, at least 50% of the Fund's assets will consist of dividend paying equity securities. In making stock selections, the Fund's investment adviser looks for securities that have a superior yield and capital gains potential. The Fund invests in a range of sectors, including financial services, food and beverage, consumer products, cable and satellite, business services, paper and forest products, computer software and services, wireless communications, publishing, agriculture, building and construction, health care, broadcasting and others. The Fund's investment advisor is Gabelli Funds, LLC.
GABELLI DVEND TRST : Gabelli Dividend & Income Trust Continues Monthly Distributions, Declaring Distributions of $0.08 Per Share, an Increase from $0.07 Per Share in Second Quarter 2011