The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) declared a $0.375
per share cash distribution payable on March 27, 2006 to Preferred Shareholders of record
on March 20, 2006.
The Preferred Shares, which trade on the New York Stock Exchange under the symbol "GDV Pr D",
are rated 'Aaa' by Moody's Investors Service and have an annual dividend rate of $1.50 per
share. The Preferred Shares were issued on November 3, 2005 at $25.00 per share and pay
distributions quarterly. The Preferred Shares will be callable at any time at the liquidation
value of $25.00 per share plus accrued dividends following the expiration of the five-year
call protection on November 3, 2010.
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. Long-term capital gains, qualified dividend income
and ordinary income, if any, will be allocated on a pro-rata basis to all distributions for
the year. As of February 15, 2006, the date of this press release, the current distribution
would include approximately 25% from net investment income and 75% from 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 $2.3 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.