The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) approved the continuation
of monthly distributions of $0.10 per share for January and February 2007. The Board authorized
an increase in the cash distribution from $0.10 per share to $0.11 per share for March 2007.
The March distribution, which represents a 10% increase over the previous month's distribution,
consists pf the $0.10 per share monthly distribution plus an additional $0.01 per share.
Under the Gabelli Dividend & Income Trust's current distribution policy, the Fund pays a minimum
annual distribution of 6% of the initial public offering price of $20.00 per share. Pursuant to
this policy, the Fund pays $0.10 per share in the first eleven months of the year and an adjusting
distribution in December which includes, if necessary, 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. Each quarter, the Board of Trustees
reviews the amount of any potential distribution and the income, capital gains, or capital
available. The Fund's distribution policy is subject to modification by the Board of Trustees
at any time.
The Board will consider an increase to the monthly distribution amount for future distributions
at its February 2007 meeting, noting the Fund's current policy of distributing annually 6% of
its $20.00 per share initial offering price and the growth of the Fund's net asset value in
excess of $20.00 per share.
The distribution for January 2007 will be payable on January 25, 2007 to shareholders of record
on January 17, 2007.
The distribution for February 2007 will be payable on February 22, 2007 to shareholders of record
on February 13, 2007.
The distribution for March 2007 will be payable on March 26, 2007 to shareholders of record on
March 16, 2007.
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,
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 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. As of November 16, 2006, the date of this press release, each of the distributions
paid in 2006 would include approximately 41% from net investment income and 59% from net capital
gains. 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 2006 will be made after year-end.
All shareholders with taxable accounts will receive written notification regarding the components
and tax treatment for all 2006 distributions in early 2007 via Form 1099-DIV. The composition
of each distribution paid in 2007 will be based on the Fund's investment activity during the
2007 calendar year.
The Gabelli Dividend & Income Trust is a non-diversified, closed-end management investment
company with $2.5 billion in total 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.