RYE, N.Y. -- (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 $0.10 per share for each of October, November, and
December 2014.
The distribution for October 2014 will be payable on October 24, 2014 to
common shareholders of record on October 17, 2014.
The distribution for November 2014 will be payable on November 20, 2014
to common shareholders of record on November 13, 2014.
The distribution for December 2014 will be payable on December 19, 2014
to common shareholders of record on December 12, 2014.
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.
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, 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
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 as of August 15, 2014, each of the
distributions paid to common shareholders in 2014 would include
approximately 14% from net investment income, 46% from net capital gains
and 40% would be deemed a return of capital 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 2014 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 2014 distributions in
early 2015 via Form 1099-DIV.
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 diversified, closed-end
management investment company with $2.5 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 Fund is managed by
Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL),
which is a publicly traded NYSE listed company.
Contacts:
Gabelli Dividend & Income Trust
Carter Austin, 914-921-5070
or
Laurissa
Martire, 914-921-5070
Source: Gabelli Dividend & Income Trust
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