The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) approved the continuation
of monthly distributions of $0.06 per share for December 2005 and January, February and
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 17% from net
investment income, 11% from capital gains and 72% from paid-in capital. 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.
For more information on managed distribution policies, please review our research report,
Closed-End Funds - Managed Distribution Policy, on the Gabelli website at www.gabelli.com.
The Gabelli Utility Trust has paid a distribution to shareholders every month since
The Gabelli Utility Trust is a non-diversified, closed-end management investment company
with $258 million in total assets whose primary investment objective is to seek long-term
growth of capital and income by investing primarily in utility companies involved in the
generation and distribution of electricity, gas and water. The Trust is managed by Gabelli
Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded
NYSE listed company.