The Gabelli Dividend & Income Trust Announces Continued Monthly Cash Distributions and 27% Increase in Annual Rate

The Gabelli Dividend & Income Trust will continue monthly distributions of $0.14 per share for April, May, and June 2025.

Quiver AI Summary

The Board of Trustees of The Gabelli Dividend & Income Trust has approved a continuation of its policy to provide fixed monthly cash distributions, declaring a distribution of $0.14 per share for April, May, and June 2025. The annual distribution has increased by 27% to $1.68 per share, which is paid monthly and began with the January 2025 distribution. The Fund is actively exploring strategic opportunities in the current equity market environment, and each quarter, the Board reviews potential distributions based on income and capital gains. The distribution policy may change at any time, and there is no guarantee it will continue. Distributions may include returns of capital, which are not taxable, and an estimated breakdown for 2025 projects about 93% of distributions to be deemed a return of capital. Shareholders will receive detailed notifications regarding the tax treatment of their distributions in early 2026. The Gabelli Dividend & Income Trust aims to provide a high level of total return through dividends and income, managed by Gabelli Funds, LLC.

Potential Positives

• The Gabelli Dividend & Income Trust has declared a significant increase in its annual distribution by 27%, raising it to $1.68 per share, which signals strong financial health and ongoing commitment to returning value to shareholders.
• The Board's decision to continue fixed monthly cash distributions of $0.14 per share ensures consistent income for investors, enhancing investor confidence in the fund's stability.
• The announcement reflects the Board's active evaluation of strategic opportunities in the equity markets, indicating a proactive management approach aimed at capitalizing on market conditions.

Potential Negatives

• The fund's distribution policy is subject to modification at any time, creating uncertainty for investors regarding future cash flows.
• A significant portion of the distributions (93%) for 2025 is deemed a return of capital, which may raise concerns among investors regarding the fund's ability to generate sustainable income from investments.
• If the fund fails to generate sufficient earnings to cover its distributions, it might be forced to return capital to shareholders, which can be viewed negatively as it effectively reduces the value of shareholders' investment.

FAQ

What is the distribution policy for The Gabelli Dividend & Income Trust?

The Gabelli Dividend & Income Trust will continue paying fixed monthly cash distributions of $0.14 per share for April, May, and June 2025.

How much will the annual distribution increase for 2025?

The annual distribution has been increased by 27% to $1.68 per share, paid monthly at $0.14 starting January 2025.

When are the cash distributions payable for 2025?

The cash distributions for April, May, and June 2025 are payable on April 23, May 22, and June 23, respectively.

What happens if the Fund's earnings are insufficient for distributions?

If earnings are insufficient, the excess distributions may be treated as a return of capital, which is generally not taxable.

How can shareholders learn about the tax treatment of distributions?

Shareholders will receive written notification regarding the tax treatment of all 2025 distributions via Form 1099-DIV in early 2026.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$GDV Insider Trading Activity

$GDV insiders have traded $GDV stock on the open market 5 times in the past 6 months. Of those trades, 5 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $GDV stock by insiders over the last 6 months:

• MARIO J GABELLI has made 5 purchases buying 12,500 shares for an estimated $302,249 and 0 sales.

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$GDV Hedge Fund Activity

We have seen 69 institutional investors add shares of $GDV stock to their portfolio, and 69 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• SABA CAPITAL MANAGEMENT, L.P. added 1,554,550 shares (+41.6%) to their portfolio in Q3 2024, for an estimated $38,008,747
• GABELLI & CO INVESTMENT ADVISERS, INC. removed 626,000 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $15,305,700
• SIT INVESTMENT ASSOCIATES INC added 404,940 shares (+91.5%) to their portfolio in Q4 2024, for an estimated $9,779,301
• MORGAN STANLEY added 342,296 shares (+4.6%) to their portfolio in Q3 2024, for an estimated $8,369,137
• ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 222,307 shares (-34.9%) from their portfolio in Q4 2024, for an estimated $5,368,714
• 1607 CAPITAL PARTNERS, LLC removed 204,039 shares (-30.3%) from their portfolio in Q3 2024, for an estimated $4,988,753
• JONES ROAD CAPITAL MANAGEMENT, L.P. added 200,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $4,830,000

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

RYE, N.Y., Feb. 13, 2025 (GLOBE NEWSWIRE) -- 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 $0.14 per share for each of April, May, and June 2025.

The Board of Trustees increased the annual distribution 27% to $1.68 per share, which will be paid $0.14 per share monthly, commencing with the January 2025 monthly distribution.

Additionally, the Board of Trustees continues to evaluate potential strategic opportunities for the Fund in what we believe to be an attractive environment to invest in the broader equity markets.

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 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 2025 would include approximately 3% from net investment income, 4% from net capital gains 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 2025 will be made after year end and can vary from the monthly 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 2025 distributions in early 2026 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:

Carter Austin




(914) 921-5475

About The Gabelli Dividend & Income Trust



The Gabelli Dividend & Income Trust is a diversified, closed-end management investment company with $3.0 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 Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GDV


CUSIP – 36242H104

THE GABELLI DIVIDEND & INCOME TRUST

Investor Relations Contact:


Carter Austin


(914) 921-5475


caustin@gabelli.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.