The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) approved the continuation
of monthly distributions of $0.10 per share for October and November.
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 November meeting, noting the Fund's current policy of distributing annually 6% of its
$20.00 offering price and the growth of the Fund's net asset value in excess of $20.00.
The distribution for October 2006 will be payable on October 25, 2006 to shareholders of record
on October 17, 2006.
The distribution for November 2006 will be payable on November 24, 2006 to shareholders of record
on November 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 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 August 17, 2006, the date of this press release, the current distribution would include
approximately 38% from net investment income and 62% 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 Fund is managed
by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly
traded NYSE listed company.