| |
The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) declared a $0.30 per share cash
distribution payable on December 27, 2004 to common stock shareholders of record on December 16, 2004,
pursuant to the Gabelli Equity Trust's 10% Distribution Policy. This distribution consists of the
$0.18 per share quarterly distribution plus a $0.12 per share additional distribution, to satisfy the
10% Distribution Policy. The $0.30 per share fourth quarter 2004 distribution is a 114% increase over
the $0.14 per share distributed in the fourth quarter of 2003. The minimum annual distribution of 10%
of the average net asset value of the Fund equates to $0.80 per share for 2004.
The Board of Directors also reaffirmed the continuation of the Gabelli Equity Trust's 10% Distribution
Policy and intends to maintain the quarterly distribution level of $0.18 per share for 2005.
Under the Gabelli Equity Trust's payout policy, the Fund pays a minimum annual distribution of 10% of
the average net asset value of the Fund. The Fund's current quarterly distribution level was raised
to $0.18 per share in the third quarter of 2004. The Fund pays an adjusting distribution in the fourth
quarter of a sufficient amount to pay 10% of the average net asset value of the Fund, as of the last
day of the four preceding calendar quarters, or to satisfy the minimum distribution requirements of the
Internal Revenue Code, whichever is greater. Each quarter, the Board of Directors reviews the amount
of any potential distribution and the income, capital gain or capital available.
A portion of the distribution may be treated as long-term capital gain and qualifying 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, interest and net
realized capital gains equal to or in excess of the aggregate distributions paid by the Fund for the
year, then the amount distributed in excess of the Fund's investment income and net realized capital
gains will be deemed a non-taxable return of capital. Long-term capital gain, qualifying dividend
income, ordinary income and non-taxable return of capital, if any, will be allocated on a pro-rata
basis to all distributions to common shareholders for the year. The final determination of the source
of all distributions in 2004 will be made after year-end. All shareholders with taxable accounts will
receive written notification regarding the components and tax treatment for all 2004 distributions in
early 2005 via Form 1099-DIV.
The Gabelli Equity Trust Inc. is a closed-end, non-diversified management investment company with
$1.6 billion in total assets whose primary investment objective is long term growth of capital. The
Fund is managed by Gabelli Funds, LLC, a subsidiary of Gabelli Asset Management Inc. (NYSE:GBL), which
is a publicly traded NYSE listed company.
| |