The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) approved the
continuation of monthly distributions of $0.10 per share for December 2005 and January,
February and March 2006.
Under the Gabelli Dividend & Income Trust's payout 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 gain or paid-in capital available. The Trust's distribution policy
is subject to modification by the Board of Trustees at any time.
The distribution for December 2005 will be payable on December 23, 2005 to shareholders
of record on December 15, 2005.
The distribution for January 2006 will be payable on January 25, 2006 to shareholders of
record on January 17, 2006.
The distribution for February 2006 will be payable on February 22, 2006 to shareholders
of record on February 13, 2006.
The distribution for March 2006 will be payable on March 27, 2006 to shareholders of record
on March 17, 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 non-taxable return of capital, if any, will be
allocated on a pro-rata basis to all distributions to common shareholders for the year.
Based on earnings to date, the distribution would include approximately 39% from net
investment income and 61% from capital gains. The final determination of the source of
all distributions in 2005 will be made after year-end. All shareholders with taxable
accounts will receive written notification regarding the components and tax treatment
for all 2005 distributions in early 2006 via Form 1099-DIV.
The Gabelli Dividend & Income Trust is a non-diversified, closed-end management investment
company with $2.2 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.