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 $0.07 per share for October, November, and December 2010.

The distribution of $0.07 per share for October 2010 will be payable on October 22, 2010 to common shareholders of record on October 15, 2010.

The distribution of $0.07 per share for November 2010 will be payable on November 22, 2010 to common shareholders of record on November 15, 2010.

The distribution of $0.07 per share for December 2010 will be payable on December 17, 2010 to common shareholders of record on December 14, 2010.

Since inception on November 28, 2003 through August 18, 2010, the Fund has provided cumulative cash distributions of $8.29 per share to common shareholders. The cumulative total return to those shareholders who invested in the Fund's initial public offering and continued to hold their shares is 3.3% on a net asset value basis and 1.2% for the Fund's publicly traded common shares. Shareholders paid $20.00 per share for the Fund at the initial public offering, and the Fund received $19.06 per share after deducting underwriting fees, sales charges, and offering expenses. The tables reflect the net asset value of the Fund and closing price on the New York Stock Exchange for the Fund's common shares on August 18, 2010, the cumulative distributions received, and the total combined value of the net asset value and closing market price plus the distributions received.

         
     
Public Offering Price (November 28, 2003)

$20.00

Sales Load and Offering Expenses

0.94

Initial Net Asset Value (after expenses)

$19.06

 
Current Net Asset Value (as of August 18, 2010)

$15.20

Total Distributions Paid Per Share ($8.29 as of August 18, 2010)

8.29

 

Current NAV + Distributions Paid Per Share

$23.49

         
 
Public Offering Price (November 28, 2003)

$20.00

 
Current Market Price (as of August 18, 2010)

$13.00

Total Distributions Paid Per Share ($8.29 as of August 18, 2010)

8.29

 

Current Market Price + Distributions Paid Per Share

$21.29

 

Note: Distributions are added back to the net asset value

 

and current market price rather than reinvested during the period.

 

         

 

 

The Fund's repurchase of common shares is an additional form of shareholder compensation. The Board of Trustees has authorized the repurchase of the Fund's common shares in the open market from time to time when such shares are trading at a discount of 7.5% or more from net asset value. In total through June 30, 2010, the Fund has repurchased and retired approximately 1.9 million common shares in the open market under this share repurchase plan.

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 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 non-taxable return of capital.

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 17, 2010, each of the distributions paid in 2010 would include approximately 29% from net investment income and 71% from paid-in capital. The estimated components of each distribution are 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 2010 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 2010 distributions in early 2011 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 $1.7 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 Investment Adviser is a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded NYSE listed company.

For The Gabelli Dividend & Income Trust
Carter Austin
Laurissa Martire
914-921-5070