The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) approved the continuation
of monthly distributions of $0.10 per share for July, August and September 2006.
Under the Gabelli Dividend & Income Trust's distribution policy, the Trust pays a minimum annual
distribution of 6% of the initial public offering price of $20.00 per share. Pursuant to this
policy, the Trust 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 Trust's distribution policy is subject to modification by the Board of Trustees
at any time.
The distribution for July 2006 will be payable on July 25, 2006 to shareholders of record on
July 17, 2006.
The distribution for August 2006 will be payable on August 25, 2006 to shareholders of record
on August 17, 2006.
The distribution for September 2006 will be payable on September 25, 2006 to shareholders of
record on September 15, 2006.
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 Trust does not generate earnings from dividends,
interest and net realized capital gains equal to or in excess of the aggregate distributions paid
by the Trust for the year, then the amount distributed in excess of the Trust'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 May 17, 2006, the date of this press release, the current distribution would include
approximately 43% from net investment income and 57% 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 Gabelli Dividend & Income Trust is a non-diversified, closed-end management investment
company with $2.4 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 Trust is managed
by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly
traded NYSE listed company.