The Board of Trustees of The Gabelli Dividend & Income Trust (NYSE:GDV) declared a $0.375 per
share cash distribution payable on December 26, 2006 to Preferred Shareholders of record on
December 18, 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 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 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.