UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number             811-21423                   

                           The Gabelli Dividend & Income Trust                              

(Exact name of registrant as specified in charter)

One Corporate Center

                         Rye, New York  10580-1422                         

(Address of principal executive offices) (Zip code)

Bruce N. Alpert

Gabelli Funds, LLC

One Corporate Center

                         Rye, New York  10580-1422                         

(Name and address of agent for service)

Registrant’s telephone number, including area code:   1-800-422-3554

Date of fiscal year end:    December   31

Date of reporting period:    December   31, 2015

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.


The Gabelli Dividend & Income Trust

Annual Report — December 31, 2015

(Y)our Portfolio Management Team

 

LOGO

To Our Shareholders,

For the year ended December 31, 2015, the net asset value (“NAV”) total return of The Gabelli Dividend & Income Trust (the “Fund”) was (5.6)%, compared with a total return of 1.4% for the Standard & Poor’s (“S&P”) 500 Index. The total return for the Fund’s publicly traded shares was (9.3)%. The Fund’s NAV per share was $21.07, while the price of the publicly traded shares closed at $18.46 on the New York Stock Exchange (“NYSE”). See below for additional performance information.

Enclosed are the financial statements, including the schedule of investments, as of December 31, 2015.

Comparative Results

 

Average Annual Returns through December 31, 2015 (a) (Unaudited)                                Since
Inception 
         1 Year   5 Year   10 Year   (11/28/03)

   Gabelli Dividend & Income Trust

              

      NAV Total Return (b)

       (5.59 )%       10.12 %       6.86 %       7.42%

      Investment Total Return (c)

       (9.32 )       11.05         8.16     6.74

  S&P 500 Index

       1.38         12.57         7.31     7.80

  Dow Jones Industrial Average

       0.22         11.24         7.72     7.57

  Nasdaq Composite Index.

       7.13         15.00         9.78     9.29
  (a)

Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Dow Jones Industrial Average is an unmanaged index of 30 large capitalization stocks. The S&P 500 and the Nasdaq Composite Indices are unmanaged indicators of stock market performance. Dividends are considered reinvested except for the Nasdaq Composite Index. You cannot invest directly in an index.

 
  (b)

Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and adjustment for the spin-off and are net of expenses. Since inception return is based on an initial NAV of $19.06.

 
  (c)

Total returns and average annual returns reflect changes in closing market values on the NYSE, reinvestment of distributions and adjustment for the spin-off. Since inception return is based on an initial offering price of $20.00.

 


Summary of Portfolio Holdings (Unaudited)

The following table presents portfolio holdings as a percent of total net assets as of December 31, 2015:

The Gabelli Dividend & Income Trust

 

Financial Services

     18.4

Food and Beverage

     13.1

Health Care

     10.3

Energy and Utilities: Oil

     6.1

Retail

     5.3

Diversified Industrial

     4.9

Telecommunications

     4.4

Consumer Products

     3.4

U.S. Government Obligations

     2.1

Entertainment

     2.1

Automotive: Parts and Accessories

     2.1

Energy and Utilities: Services

     2.1

Energy and Utilities: Integrated

     2.0

Cable and Satellite

     2.0

Specialty Chemicals

     2.0

Aerospace

     2.0

Business Services

     1.6

Computer Software and Services

     1.6

Electronics

     1.6

Equipment and Supplies

     1.4

Energy and Utilities: Natural Gas

     1.4

Environmental Services

     1.3

Machinery

     1.1

Metals and Mining

     0.8

Computer Hardware

     0.8

Automotive

     0.8

Energy and Utilities: Electric

     0.7

Communications Equipment

     0.6

Broadcasting

     0.6

Transportation

     0.5

Real Estate

     0.4

Wireless Communications

     0.4

Consumer Services

     0.4

Hotels and Gaming

     0.3

Energy and Utilities: Water

     0.3

Paper and Forest Products

     0.3

Energy and Utilities

     0.3

Aviation: Parts and Services

     0.2

Building and Construction

     0.2

Publishing

     0.1

Agriculture

     0.0 %* 
  

 

 

 
         100.0
  

 

 

 

 

 

*

Amount represents less than 0.05%.

 

 

The Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain this information at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Proxy Voting

The Fund files Form N-PX with its complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov.

 

2


The Gabelli Dividend & Income Trust

Schedule of Investments — December 31, 2015

 

 

Shares         Cost    

Market

Value

 
  COMMON STOCKS — 96.7%   
  Aerospace — 1.8%   
  34,000     

Kaman Corp.

  $ 675,256      $ 1,387,540   
  107,000     

Rockwell Automation Inc.

    4,661,464        10,979,270   
  1,507,000     

Rolls-Royce Holdings plc

    11,374,835        12,774,387   
  122,827,500     

Rolls-Royce Holdings plc-Entitlement Shares†

    189,382        181,073   
  92,500     

The Boeing Co.

    7,135,348        13,374,575   
   

 

 

   

 

 

 
        24,036,285          38,696,845   
   

 

 

   

 

 

 
  Agriculture — 0.0%   
  1,000     

Bunge Ltd.

    78,107        68,280   
   

 

 

   

 

 

 
  Automotive — 0.8%   
  325,000     

Ford Motor Co.

    4,600,590        4,579,250   
  205,000     

General Motors Co.

    6,848,401        6,972,050   
  229,000     

Navistar International Corp.†

    6,681,618        2,024,360   
  83,000     

PACCAR Inc.

    3,661,107        3,934,200   
   

 

 

   

 

 

 
      21,791,716        17,509,860   
   

 

 

   

 

 

 
  Automotive: Parts and Accessories — 2.1%   
  200,000     

Dana Holding Corp.

    3,951,628        2,760,000   
  90,068     

Federal-Mogul Holdings Corp.†

    1,233,345        616,966   
  340,000     

Genuine Parts Co.

    20,052,736        29,202,600   
  133,000     

Johnson Controls Inc.

    4,671,616        5,252,170   
  24,000     

O’Reilly Automotive Inc.†

    3,139,472        6,082,080   
  17,000     

Visteon Corp.†

    1,670,417        1,946,500   
   

 

 

   

 

 

 
      34,719,214        45,860,316   
   

 

 

   

 

 

 
  Aviation: Parts and Services — 0.2%   
  93,000     

B/E Aerospace Inc.

    5,496,705        3,940,410   
  39,000     

KLX Inc.†

    1,821,153        1,200,810   
   

 

 

   

 

 

 
      7,317,858        5,141,220   
   

 

 

   

 

 

 
  Broadcasting — 0.6%   
  24,500     

CBS Corp., Cl. A, Voting

    1,347,308        1,276,940   
  8,000     

Dolby Laboratories Inc., Cl. A

    328,916        269,200   
  9,000     

Liberty Broadband Corp., Cl. C†

    370,129        466,740   
  41,032     

Liberty Global plc, Cl. A†

    489,827        1,738,116   
  150,574     

Liberty Global plc, Cl. C†

    2,624,024        6,138,902   
  8,000     

Liberty Media Corp., Cl. A†

    210,856        314,000   
  16,000     

Liberty Media Corp., Cl. C†

    414,766        609,280   
  89,000     

MSG Networks Inc., Cl. A†

    530,872        1,851,200   
   

 

 

   

 

 

 
      6,316,698        12,664,378   
   

 

 

   

 

 

 
  Building and Construction — 0.2%   
  78,000     

Fortune Brands Home & Security Inc.

    1,037,580        4,329,000   
  88,000     

Layne Christensen Co.†

    1,433,961        462,880   
   

 

 

   

 

 

 
      2,471,541        4,791,880   
   

 

 

   

 

 

 
  Business Services — 1.6%   
  34,400     

Aramark

    849,119        1,109,400   
Shares         Cost    

Market

Value

 
  85,000     

Diebold Inc.

  $ 2,639,755      $ 2,557,650   
  150,000     

Fly Leasing Ltd., ADR

    2,036,969        2,047,500   
  3,200     

Jardine Matheson Holdings Ltd.

    198,137        155,936   
  153,700     

Macquarie Infrastructure Corp.

    7,577,511        11,158,620   
  179,000     

MasterCard Inc., Cl. A

    2,762,467        17,427,440   
  29,000     

The Brink’s Co.

    740,679        836,940   
   

 

 

   

 

 

 
        16,804,637          35,293,486   
   

 

 

   

 

 

 
  Cable and Satellite — 2.0%   
  67,000     

AMC Networks Inc., Cl. A†

    2,512,035        5,003,560   
  400     

Cable One Inc.

    131,589        173,464   
  426,000     

Cablevision Systems Corp., Cl. A

    6,252,507        13,589,400   
  15,000     

Cogeco Inc.

    296,908        555,576   
  80,000     

Comcast Corp., Cl. A

    3,126,848        4,514,400   
  181,000     

DISH Network Corp., Cl. A†

    5,328,220        10,349,580   
  50,000     

EchoStar Corp., Cl. A†

    1,296,581        1,955,500   
  1,801     

Liberty Global plc LiLAC, Cl. A†

    18,062        74,507   
  4,078     

Liberty Global plc LiLAC, Cl. C†

    100,168        175,354   
  9,241     

Liberty Ventures, Cl. A†

    183,560        416,862   
  176,000     

Rogers Communications Inc., Cl. B

    3,672,915        6,064,960   
  5,000     

Time Warner Cable Inc.

    668,163        927,950   
   

 

 

   

 

 

 
      23,587,556        43,801,113   
   

 

 

   

 

 

 
  Communications Equipment — 0.6%   
  235,000     

Cisco Systems Inc.

    6,152,702        6,381,425   
  384,000     

Corning Inc.

    4,703,885        7,019,520   
   

 

 

   

 

 

 
      10,856,587        13,400,945   
   

 

 

   

 

 

 
  Computer Hardware — 0.8%   
  164,000     

Apple Inc.

    11,272,243        17,262,640   
  5,000     

SanDisk Corp.

    32,734        379,950   
   

 

 

   

 

 

 
      11,304,977        17,642,590   
   

 

 

   

 

 

 
  Computer Software and Services — 1.6%   
  10,000     

Alphabet Inc., Cl. A†

    2,656,297        7,780,100   
  12,027     

Alphabet Inc., Cl. C†

    3,736,841        9,127,050   
  25,000     

Blucora Inc.†

    371,605        245,000   
  15,000     

CyrusOne Inc.

    312,567        561,750   
  90,000     

EarthLink Holdings Corp.

    509,715        668,700   
  35,000     

eBay Inc.†

    782,634        961,800   
  22,000     

Internap Corp.†

    167,016        140,800   
  15,903     

MedAssets Inc.†

    337,821        492,039   
  190,000     

Microsoft Corp.

    6,124,888        10,541,200   
  110,000     

Yahoo! Inc.†

    2,971,336        3,658,600   
   

 

 

   

 

 

 
      17,970,720        34,177,039   
   

 

 

   

 

 

 
  Consumer Products — 3.4%   
  3,000     

Altria Group Inc.

    64,791        174,630   
 

 

See accompanying notes to financial statements.

 

3


The Gabelli Dividend & Income Trust

Schedule of Investments (Continued) — December 31, 2015

 

 

Shares         Cost     Market
Value
 
  COMMON STOCKS (Continued)   
  Consumer Products (Continued)   
  215,000     

Avon Products Inc.

  $ 2,727,095      $ 870,750   
  5,000     

Church & Dwight Co. Inc.

    312,042        424,400   
  70,000     

Coty Inc., Cl. A

    1,163,521        1,794,100   
  174,000     

Edgewell Personal Care Co.

      15,250,101          13,636,380   
  65,000     

Energizer Holdings Inc.

    2,053,583        2,213,900   
  100,000     

Hanesbrands Inc.

    509,321        2,943,000   
  42,000     

Harman International Industries Inc.

    1,648,508        3,956,820   
  15,000     

Kimberly-Clark Corp.

    863,386        1,909,500   
  29,000     

Philip Morris International Inc.

    1,503,629        2,549,390   
  7,000     

Stanley Black & Decker Inc.

    544,312        747,110   
  875,000     

Swedish Match AB

    12,114,908        31,117,284   
  145,000     

The Procter & Gamble Co.

    8,103,680        11,514,450   
   

 

 

   

 

 

 
      46,858,877        73,851,714   
   

 

 

   

 

 

 
  Consumer Services — 0.4%   
  65,000     

Liberty Interactive Corp. QVC

   
 

Group, Cl. A†

    1,040,180        1,775,800   
  197,500     

The ADT Corp.

    6,331,917        6,513,550   
   

 

 

   

 

 

 
      7,372,097        8,289,350   
   

 

 

   

 

 

 
  Diversified Industrial — 4.4%   
  92,000     

Bouygues SA

    3,213,947        3,653,825   
  55,000     

Eaton Corp. plc

    2,712,564        2,862,200   
  962,000     

General Electric Co.

    20,591,249        29,966,300   
  331,000     

Honeywell International Inc.

    20,909,980        34,281,670   
  56,000     

ITT Corp.

    1,056,566        2,033,920   
  5,600     

Jardine Strategic Holdings Ltd.

    199,457        153,048   
  20,000     

Pentair plc

    778,525        990,600   
  5,000     

Sulzer AG

    493,529        470,996   
  252,000     

Textron Inc.

    1,826,602        10,586,520   
  300,000     

Toray Industries Inc.

    2,239,436        2,820,417   
  310,000     

Tyco International plc

    6,845,118        9,885,900   
   

 

 

   

 

 

 
      60,866,973        97,705,396   
   

 

 

   

 

 

 
  Electronics — 1.6%   
  12,000     

Agilent Technologies Inc.

    496,304        501,720   
  13,000     

Emerson Electric Co.

    774,560        621,790   
  240,000     

Intel Corp.

    4,762,432        8,268,000   
  425,000     

Sony Corp., ADR

    8,272,599        10,459,250   
  70,000     

TE Connectivity Ltd.

    2,377,312        4,522,700   
  100,000     

Texas Instruments Inc.

    2,905,588        5,481,000   
  30,000     

Thermo Fisher Scientific Inc.

    3,709,773        4,255,500   
   

 

 

   

 

 

 
      23,298,568        34,109,960   
   

 

 

   

 

 

 
  Energy and Utilities: Electric — 0.7%   
  14,000     

ALLETE Inc.

    458,317        711,620   
  13,000     

American Electric Power Co. Inc.

    448,002        757,510   
  105,000     

Cleco Corp.

    5,692,550        5,482,050   
Shares         Cost     Market
Value
 
  15,000     

Edison International

  $ 544,766      $ 888,150   
  17,000     

El Paso Electric Co.

    589,006        654,500   
  70,000     

Electric Power Development Co. Ltd.

    1,833,684        2,518,824   
  40,000     

Great Plains Energy Inc.

    777,352        1,092,400   
  5,000     

Pepco Holdings Inc.

    99,044        130,050   
  14,000     

Pinnacle West Capital Corp.

    546,682        902,720   
  45,000     

The AES Corp.

    483,618        430,650   
  44,000     

WEC Energy Group Inc.

    1,364,711        2,257,640   
   

 

 

   

 

 

 
        12,837,732          15,826,114   
   

 

 

   

 

 

 
  Energy and Utilities: Integrated — 2.0%   
  2,000     

Alliant Energy Corp.

    54,848        124,900   
  27,000     

Avista Corp.

    507,487        954,990   
  13,000     

Black Hills Corp.

    334,102        603,590   
  26,000     

Chubu Electric Power Co. Inc.

    448,302        359,624   
  345,000     

CONSOL Energy Inc.

    11,720,658        2,725,500   
  10,000     

Duke Energy Corp.

    489,653        713,900   
  100,000     

Edison SpA

    220,882        54,501   
  20,000     

Endesa SA

    506,664        402,643   
  230,000     

Enel SpA

    1,051,884        972,820   
  95,208     

Eversource Energy

    1,695,895        4,862,273   
  39,000     

Hawaiian Electric Industries Inc.

    909,977        1,129,050   
  401,000     

Hera SpA

    792,954        1,067,683   
  10,000     

Hokkaido Electric Power Co. Inc.†

    107,280        103,748   
  24,000     

Hokuriku Electric Power Co.

    386,941        358,418   
  45,000     

Iberdrola SA, ADR

    952,490        1,274,400   
  127,000     

Korea Electric Power Corp., ADR†

    1,758,452        2,688,590   
  40,000     

Kyushu Electric Power Co. Inc.†

    652,010        441,616   
  30,000     

MGE Energy Inc.

    642,742        1,392,000   
  27,000     

National Grid plc, ADR

    1,223,561        1,877,580   
  65,000     

NextEra Energy Inc.

    2,848,235        6,752,850   
  49,000     

NiSource Inc.

    397,054        955,990   
  57,000     

OGE Energy Corp.

    668,036        1,498,530   
  14,000     

Ormat Technologies Inc.

    210,000        510,580   
  31,000     

Public Service Enterprise Group Inc.

    936,282        1,199,390   
  58,000     

Shikoku Electric Power Co. Inc.

    1,066,813        916,843   
  50,000     

The Chugoku Electric Power Co. Inc.

    877,797        665,585   
  32,000     

The Empire District Electric Co.

    677,028        898,240   
  20,000     

The Kansai Electric Power Co. Inc.†

    278,704        242,855   
  45,000     

Tohoku Electric Power Co. Inc.

    663,612        569,075   
  28,000     

Vectren Corp.

    787,543        1,187,760   
 

 

See accompanying notes to financial statements.

 

4


The Gabelli Dividend & Income Trust

Schedule of Investments (Continued) — December 31, 2015

 

 

Shares         Cost    

Market

Value

 
 

COMMON STOCKS (Continued)

  

 

Energy and Utilities: Integrated (Continued)

  

  65,000     

Westar Energy Inc.

  $ 1,338,741      $ 2,756,650   
  100,000     

Xcel Energy Inc.

    1,663,770        3,591,000   
   

 

 

   

 

 

 
        36,870,397          43,853,174   
   

 

 

   

 

 

 
 

Energy and Utilities: Natural Gas — 1.4%

  

  46,400     

California Resources Corp.

    277,692        108,112   
  49,000     

Columbia Pipeline Group Inc.

    621,033        980,000   
  50,000     

Delta Natural Gas Co. Inc.

    667,803        1,049,500   
  105,000     

Kinder Morgan Inc.

    3,126,400        1,566,600   
  306,000     

National Fuel Gas Co.

    9,037,826        13,081,500   
  10,000     

ONE Gas Inc.

    148,203        501,700   
  13,500     

ONEOK Inc.

    681,905        332,910   
  94,500     

Sempra Energy

    2,885,326        8,883,945   
  30,000     

South Jersey Industries Inc.

    476,644        705,600   
  48,000     

Southwest Gas Corp.

    1,262,524        2,647,680   
   

 

 

   

 

 

 
      19,185,356        29,857,547   
   

 

 

   

 

 

 
 

Energy and Utilities: Oil — 6.1%

  

  87,000     

Anadarko Petroleum Corp.

    5,643,659        4,226,460   
  53,000     

Apache Corp.

    3,161,870        2,356,910   
  215,000     

BG Group plc, ADR

    1,741,038        3,121,800   
  171,000     

BP plc, ADR

    7,683,077        5,345,460   
  68,000     

Chesapeake Energy Corp.

    1,235,228        306,000   
  156,000     

Chevron Corp.

    11,895,004        14,033,760   
  247,700     

ConocoPhillips

    12,975,943        11,565,113   
  74,000     

Devon Energy Corp.

    4,482,959        2,368,000   
  130,000     

Eni SpA, ADR

    4,844,846        3,874,000   
  188,200     

Exxon Mobil Corp.

    12,494,071        14,670,190   
  47,000     

Hess Corp.

    2,031,593        2,278,560   
  331,000     

Marathon Oil Corp.

    7,392,995        4,167,290   
  200,000     

Marathon Petroleum Corp.

    3,377,474        10,368,000   
  80,000     

Murphy Oil Corp.

    3,670,311        1,796,000   
  200,000     

Occidental Petroleum Corp.

    10,004,088        13,522,000   
  200     

PetroChina Co. Ltd., ADR

    12,118        13,118   
  11,000     

Petroleo Brasileiro SA, ADR†

    204,816        47,300   
  166,350     

Phillips 66

    12,198,992        13,607,430   
  210,000     

Repsol SA, ADR

    4,367,811        2,337,300   
  220,000     

Royal Dutch Shell plc, Cl. A, ADR

    11,028,128        10,073,800   
  540,000     

Statoil ASA, ADR

    8,740,281        7,538,400   
  145,000     

Total SA, ADR

    6,538,739        6,517,750   
   

 

 

   

 

 

 
      135,725,041        134,134,641   
   

 

 

   

 

 

 
 

Energy and Utilities: Services — 2.1%

  

  52,000     

ABB Ltd., ADR

    566,254        921,960   
  77,000     

Cameron International Corp.†

    1,522,350        4,866,400   
  72,000     

Diamond Offshore Drilling Inc.

    3,637,567        1,519,200   
  423,600     

Halliburton Co.

    15,537,661        14,419,344   
  10,000     

Noble Corp. plc

    224,242        105,500   
  24,000     

Oceaneering International Inc.

    489,219        900,480   
Shares         Cost    

Market

Value

 
  110,000     

Schlumberger Ltd.

  $ 3,742,849      $ 7,672,500   
  4,928     

Seventy Seven Energy Inc.†

    69,138        5,174   
  1,755,000     

Weatherford International plc†

    24,125,172        14,724,450   
   

 

 

   

 

 

 
        49,914,452          45,135,008   
   

 

 

   

 

 

 
 

Energy and Utilities: Water — 0.3%

  

  12,000     

American States Water Co.

    150,968        503,400   
  36,000     

American Water Works Co. Inc.

    848,149        2,151,000   
  74,000     

Aqua America Inc.

    998,965        2,205,200   
  30,000     

Severn Trent plc

    764,139        962,806   
  50,000     

SJW Corp.

    860,993        1,482,500   
  9,000     

The York Water Co.

    117,059        224,460   
  6,000     

United Utilities Group plc, ADR

    168,600        164,370   
   

 

 

   

 

 

 
      3,908,873        7,693,736   
   

 

 

   

 

 

 
 

Entertainment — 2.1%

  

  35,000     

Take-Two Interactive Software Inc.†

    332,318        1,219,400   
  31,000     

The Madison Square Garden Co, Cl. A†

    1,420,380        5,015,800   
  25,000     

The Walt Disney Co.

    2,748,100        2,627,000   
  175,000     

Time Warner Inc.

    4,985,658        11,317,250   
  223,000     

Twenty-First Century Fox Inc., Cl. A

    7,293,588        6,056,680   
  248,000     

Twenty-First Century Fox Inc., Cl. B

    6,680,912        6,753,040   
  121,000     

Viacom Inc., Cl. B

    5,962,540        4,980,360   
  395,000     

Vivendi SA

    9,968,535        8,525,273   
   

 

 

   

 

 

 
      39,392,031        46,494,803   
   

 

 

   

 

 

 
 

Environmental Services — 1.3%

  

  180,200     

Progressive Waste Solutions Ltd.

    3,807,378        4,243,710   
  240,000     

Republic Services Inc.

    7,484,005        10,557,600   
  23,000     

Veolia Environnement SA

    275,698        546,524   
  8,000     

Waste Connections Inc.

    285,494        450,560   
  260,000     

Waste Management Inc.

    10,116,612        13,876,200   
   

 

 

   

 

 

 
      21,969,187        29,674,594   
   

 

 

   

 

 

 
 

Equipment and Supplies — 1.4%

  

  93,000     

CIRCOR International Inc.

    2,086,876        3,919,950   
  52,000     

Graco Inc.

    2,769,488        3,747,640   
  170,000     

Mueller Industries Inc.

    3,689,272        4,607,000   
  705,000     

RPC Inc.

    3,059,996        8,424,750   
  124,000     

Sealed Air Corp.

    2,852,936        5,530,400   
  58,000     

Tenaris SA, ADR

    2,429,768        1,380,400   
  90,000     

The Timken Co.

    3,391,729        2,573,100   
   

 

 

   

 

 

 
      20,280,065        30,183,240   
   

 

 

   

 

 

 
 

Financial Services — 18.4%

  

  8,000     

Alleghany Corp.†

    2,949,449        3,823,440   
 

 

See accompanying notes to financial statements.

 

5


The Gabelli Dividend & Income Trust

Schedule of Investments (Continued) — December 31, 2015

 

 

Shares

       

Cost

   

Market

Value

 
 

COMMON STOCKS (Continued)

  

 

Financial Services (Continued)

  

  488,200     

American Express Co.

  $   26,312,765      $   33,954,310   
  675,000     

American International Group Inc.

    28,607,576        41,829,750   
  310,000     

Bank of America Corp.

    2,043,743        5,217,300   
  9,000     

Berkshire Hathaway Inc.,
Cl. B†

    891,117        1,188,360   
  70,000     

Blackhawk Network Holdings Inc.†

    1,633,326        3,094,700   
  20,000     

BlackRock Inc.

    3,031,089        6,810,400   
  140,000     

Citigroup Inc.

    5,246,150        7,245,000   
  110,000     

CME Group Inc.

    7,082,901        9,966,000   
  4,000     

Credit Acceptance Corp.†

    523,759        856,080   
  33,000     

Cullen/Frost Bankers Inc.

    2,553,807        1,980,000   
  120,000     

Discover Financial Services

    1,813,182        6,434,400   
  238,974     

Fifth Street Finance Corp.

    1,671,699        1,524,654   
  200,000     

First Niagara Financial Group Inc.

    2,490,514        2,170,000   
  95,000     

FNF Group

    1,441,104        3,293,650   
  30,000     

FNFV Group†

    182,958        336,900   
  59,966     

H&R Block Inc.

    1,123,196        1,997,467   
  30,000     

Hennessy Capital Acquisition Corp. II†

    300,000        294,000   
  25,000     

Hong Kong Exchanges and Clearing Ltd.

    402,742        640,318   
  38,000     

HSBC Holdings plc, ADR

    2,145,409        1,499,860   
  200,000     

Invesco Ltd.

    4,757,439        6,696,000   
  578,700     

JPMorgan Chase & Co.

      22,656,404          38,211,561   
  30,000     

Kinnevik Investment AB, Cl. B

    663,872        931,120   
  89,250     

KKR & Co. LP

    1,916,198        1,391,407   
  440,103     

Legg Mason Inc.

    12,765,071        17,265,241   
  43,000     

M&T Bank Corp.

    2,824,120        5,210,740   
  275,000     

Morgan Stanley

    5,578,087        8,747,750   
  72,000     

National Australia Bank Ltd., ADR

    854,233        783,360   
  190,000     

Navient Corp.

    1,534,624        2,175,500   
  170,000     

New York Community Bancorp Inc.

    2,844,696        2,774,400   
  114,000     

Northern Trust Corp.

    5,341,292        8,218,260   
  190,000     

PayPal Holdings Inc.†

    6,069,933        6,878,000   
  30,000     

Resona Holdings Inc.

    156,149        147,560   
  205,000     

SLM Corp.†

    1,044,610        1,336,600   
  30,000     

StanCorp. Financial Group Inc.

    3,420,558        3,416,400   
  219,000     

State Street Corp.

    9,371,562        14,532,840   
  172,000     

T. Rowe Price Group Inc.

    9,166,935        12,296,280   
  874,000     

The Bank of New York Mellon Corp.

    26,365,568        36,026,280   
  141,000     

The Blackstone Group LP

    4,148,102        4,122,840   
  200,000     

The Hartford Financial Services Group Inc.

    6,337,167        8,692,000   

Shares

       

Cost

   

Market

Value

 
  287,000     

The PNC Financial Services Group Inc.

  $   16,205,798      $   27,353,970   
  123,000     

The Travelers Companies Inc.

    7,477,388        13,881,780   
  130,000     

U.S. Bancorp

    3,910,683        5,547,100   
  53,000     

W. R. Berkley Corp.

    2,016,528        2,901,750   
  138,000     

Waddell & Reed Financial Inc., Cl. A

    2,932,522        3,955,080   
  653,500     

Wells Fargo & Co.

    20,649,298        35,524,260   
  20,000     

Willis Group Holdings plc

    616,950        971,400   
   

 

 

   

 

 

 
      274,072,273        404,146,068   
   

 

 

   

 

 

 
 

Food and Beverage — 13.1%

  

  8,000     

Ajinomoto Co. Inc.

    137,110        191,655   
  208,168     

Boulder Brands Inc.†

    2,153,308        2,285,685   
  5,000     

Brown-Forman Corp.,
Cl. B

    341,437        496,400   
  115,000     

Campbell Soup Co.

    3,812,255        6,043,250   
  1,000,000     

China Mengniu Dairy Co. Ltd.

    1,245,706        1,630,957   
  66,000     

Chr. Hansen Holding A/S

    2,705,045        4,149,027   
  269,000     

ConAgra Foods Inc.

    7,716,690        11,341,040   
  36,000     

Constellation Brands Inc., Cl. A

    705,011        5,127,840   
  237,222     

Danone SA

    11,894,472        16,055,931   
  2,000,000     

Davide Campari-Milano SpA

    11,447,762        17,388,091   
  21,141     

Diageo plc, ADR

    2,426,412        2,305,849   
  239,000     

Dr Pepper Snapple Group Inc.

    8,746,345        22,274,800   
  524,000     

General Mills Inc.

    16,224,536        30,213,840   
  18,000     

Heineken Holding NV

    747,987        1,388,874   
  279,000     

ITO EN Ltd.

    6,134,333        7,242,231   
  42,800     

Kellogg Co.

    2,198,699        3,093,156   
  375,000     

Kikkoman Corp.

    4,483,113        13,181,705   
  90,000     

Maple Leaf Foods Inc.

    1,606,157        1,545,422   
  788,000     

Mondelēz International Inc., Cl. A

    18,737,904        35,333,920   
  150,000     

Morinaga Milk Industry Co. Ltd.

    588,860        688,881   
  32,000     

Nestlé SA.

    2,133,891        2,381,789   
  35,000     

Nestlé SA, ADR

    2,563,158        2,604,700   
  168,000     

NISSIN FOODS HOLDINGS CO. LTD.

    5,735,429        8,987,395   
  1,610,650     

Parmalat SpA

    4,822,569        4,183,416   
  339,450     

Parmalat SpA, GDR(a)(b)

    981,615        881,280   
  212,000     

PepsiCo Inc.

    14,649,107        21,183,040   
  62,000     

Pernod Ricard SA

    5,311,274        7,088,255   
  10,000     

Post Holdings Inc.†

    540,050        617,000   
  25,000     

Remy Cointreau SA

    1,396,049        1,793,419   
  18,000     

Suntory Beverage & Food Ltd.

    573,702        796,705   
  193,666     

The Kraft Heinz Co.

    6,491,390        14,091,138   
  567,000     

The Coca-Cola Co.

    15,232,674        24,358,320   
  7,000     

The J.M. Smucker Co.

    690,177        863,380   
  30,000     

Unilever plc, ADR

    960,480        1,293,600   
  324,000     

Yakult Honsha Co. Ltd.

    8,320,490        16,065,893   
   

 

 

   

 

 

 
      174,455,197        289,167,884   
   

 

 

   

 

 

 

 

 

 

See accompanying notes to financial statements.

 

6


The Gabelli Dividend & Income Trust

Schedule of Investments (Continued) — December 31, 2015

 

 

Shares

       

Cost

   

Market
Value

 
 

COMMON STOCKS (Continued)

  

 

Health Care — 10.2%

  

  134,000     

Abbott Laboratories

  $ 3,939,023      $ 6,017,940   
  50,000     

AbbVie Inc.

    2,704,900        2,962,000   
  26,655     

Aetna Inc.

    1,824,906        2,881,939   
  70,000     

Akorn Inc.†

    2,040,346        2,611,700   
  140,000     

Alere Inc.†

    4,961,225        5,472,600   
  60,000     

Allergan plc†

    12,413,239        18,750,000   
  32,000     

AmerisourceBergen Corp.

    1,510,306        3,318,720   
  25,000     

Amgen Inc.

    3,620,322        4,058,250   
  15,000     

Anthem Inc.

    1,337,588        2,091,600   
  144,866     

Baxalta Inc.

    4,531,457        5,654,120   
  144,866     

Baxter International Inc.

    5,319,537        5,526,638   
  10,000     

Becton, Dickinson and Co.

    1,496,549        1,540,900   
  525,000     

BioScrip Inc.†

    3,471,936        918,750   
  68,676     

Bristol-Myers Squibb Co.

    2,041,209        4,724,222   
  7,000     

Chemed Corp.

    453,403        1,048,600   
  45,000     

Cigna Corp.

    4,068,414        6,584,850   
  45,000     

DaVita HealthCare Partners Inc.†

    2,734,777        3,136,950   
  100,000     

Eli Lilly & Co.

    4,323,602        8,426,000   
  10,000     

Express Scripts Holding Co.†

    727,567        874,100   
  40,000     

Gerresheimer AG

    2,664,055        3,138,116   
  60,000     

Gilead Sciences Inc.

    5,034,434        6,071,400   
  60,000     

HCA Holdings Inc.†

    3,426,901        4,057,800   
  12,500     

Henry Schein Inc.†

    1,417,250        1,977,375   
  24,000     

Humana Inc.

    3,325,256        4,284,240   
  8,000     

ICU Medical Inc.†

    538,770        902,240   
  115,000     

Johnson & Johnson

    8,619,542        11,812,800   
  110,000     

Kindred Healthcare Inc.

    2,365,174        1,310,100   
  13,500     

Laboratory Corp. of America Holdings†

    1,184,428        1,669,140   
  525,000     

Liberator Medical Holdings Inc.

    1,554,627        1,753,500   
  50,000     

Mallinckrodt plc†

    3,217,415        3,731,500   
  25,000     

McKesson Corp.

    3,634,946        4,930,750   
  22,000     

Mead Johnson Nutrition Co.

    1,419,743        1,736,900   
  188,620     

Medtronic plc

    14,150,272        14,508,650   
  251,000     

Merck & Co. Inc.

    9,517,796        13,257,820   
  50,000     

Mylan NV†

    2,900,000        2,703,500   
  50,000     

Myriad Genetics Inc.†

    1,619,768        2,158,000   
  45,000     

Orthofix International NV†

    1,458,930        1,764,450   
  112,500     

Owens & Minor Inc.

    2,399,108        4,047,750   
  94,000     

Patterson Companies Inc.

    3,250,636        4,249,740   
  669,548     

Pfizer Inc.

    13,454,068        21,613,009   
  30,000     

St. Jude Medical Inc.

    1,407,564        1,853,100   
  40,000     

Stryker Corp.

    2,944,900        3,717,600   
  40,000     

Tenet Healthcare Corp.†

    1,983,184        1,212,000   
  20,000     

The Cooper Companies Inc.

    2,479,926        2,684,000   
  52,000     

UnitedHealth Group Inc.

    3,875,023        6,117,280   
  20,000     

Zimmer Biomet Holdings Inc.

    1,551,002        2,051,800   

Shares

       

Cost

   

Market Value

 
  197,159     

Zoetis Inc.

  $ 5,718,437      $ 9,447,859   
   

 

 

   

 

 

 
       170,633,461         225,362,298   
   

 

 

   

 

 

 
 

Hotels and Gaming — 0.3%

  

  19,000     

Accor SA

    654,124        826,038   
  115,000     

Boyd Gaming Corp.†

    748,084        2,285,050   
  400,000     

Ladbrokes plc

    1,885,245        705,851   
  53,000     

Las Vegas Sands Corp.

    2,214,674        2,323,520   
  400,000     

Mandarin Oriental International Ltd.

    680,880        620,000   
  10,000     

Ryman Hospitality Properties Inc.

    562,900        516,400   
  6,000     

Wyndham Worldwide Corp.

    424,345        435,900   
   

 

 

   

 

 

 
      7,170,252        7,712,759   
   

 

 

   

 

 

 
 

Machinery — 1.1%

  

  689,040     

CNH Industrial NV

    4,309,631        4,713,034   
  90,500     

Deere & Co.

    5,168,640        6,902,435   
  342,000     

Xylem Inc.

    10,316,987        12,483,000   
   

 

 

   

 

 

 
      19,795,258        24,098,469   
   

 

 

   

 

 

 
 

Metals and Mining — 0.8%

  

  70,000     

Agnico Eagle Mines Ltd.

    2,247,676        1,839,600   
  230,000     

Alcoa Inc.

    2,266,458        2,270,100   
  20,000     

Alliance Holdings GP LP

    386,353        403,600   
  100,000     

Barrick Gold Corp.

    1,822,740        738,000   
  8,000     

BHP Billiton Ltd., ADR

    217,549        206,080   
  30,000     

Franco-Nevada Corp.

    1,141,089        1,372,407   
  660,000     

Freeport-McMoRan Inc.

    9,675,850        4,468,200   
  13,000     

Labrador Iron Ore Royalty Corp.

    431,922        90,099   
  330,000     

Newmont Mining Corp.

    14,155,288        5,936,700   
  4,000     

Peabody Energy Corp.

    76,908        30,720   
  3,200     

South32 Ltd., ADR†

    27,089        12,208   
  48,786     

TimkenSteel Corp.

    1,317,829        408,827   
   

 

 

   

 

 

 
      33,766,751        17,776,541   
   

 

 

   

 

 

 
 

Paper and Forest Products — 0.3%

  

  204,000     

International Paper Co.

    9,306,877        7,690,800   
   

 

 

   

 

 

 
 

Publishing — 0.1%

  

 
  400     

Graham Holdings Co., Cl. B

    214,697        193,988   
  107,000     

News Corp., Cl. B

    1,606,462        1,493,720   
   

 

 

   

 

 

 
      1,821,159        1,687,708   
   

 

 

   

 

 

 
 

Real Estate — 0.4%

  

 
  19,500     

Brookfield Asset Management Inc., Cl. A

    133,677        614,835   
  24,000     

Communications Sales & Leasing Inc.†

    625,140        448,560   
  71,779     

Crown Castle International Corp.

    2,285,610        6,205,295   
  18,000     

Forest City Enterprises Inc., Cl. A†

    439,998        394,740   

 

 

 

See accompanying notes to financial statements.

 

7


The Gabelli Dividend & Income Trust

Schedule of Investments (Continued) — December 31, 2015

 

 

Shares

       

Cost

   

Market
Value

 
 

COMMON STOCKS (Continued)

  

 

Real Estate (Continued)

  

  16,000     

QTS Realty Trust Inc., Cl. A

  $ 347,357      $ 721,760   
   

 

 

   

 

 

 
      3,831,782        8,385,190   
   

 

 

   

 

 

 
 

Retail — 5.3%

   
  250,000     

Best Buy Co. Inc.

    6,605,635        7,612,500   
  80,000     

CST Brands Inc.

    2,593,385        3,131,200   
  356,000     

CVS Health Corp.

      19,082,287          34,806,120   
  488,000     

Hertz Global Holdings Inc.†

    9,631,875        6,944,240   
  139,300     

Ingles Markets Inc.,
Cl. A

    1,585,129        6,140,344   
  5,181     

J Alexander’s Holdings Inc.†

    29,780        56,576   
  25,000     

Kohl’s Corp.

    1,268,182        1,190,750   
  90,000     

Lowe’s Companies Inc.

    2,027,654        6,843,600   
  104,000     

Macy’s Inc.

    1,463,288        3,637,920   
  50,000     

Murphy USA Inc.†

    1,889,784        3,037,000   
  26,000     

Outerwall Inc.

    1,286,597        950,040   
  94,800     

Rush Enterprises Inc., Cl. B†

    1,729,030        2,076,120   
  264,000     

Sally Beauty Holdings Inc.†

    3,961,658        7,362,960   
  120,000     

Seven & i Holdings Co. Ltd.

    3,637,248        5,540,996   
  40,000     

The Home Depot Inc.

    1,491,260        5,290,000   
  178,500     

Walgreens Boots Alliance Inc.

    7,104,983        15,200,167   
  20,000     

Wal-Mart Stores Inc.

    970,066        1,226,000   
  137,000     

Whole Foods Market Inc.

    4,963,108        4,589,500   
   

 

 

   

 

 

 
      71,320,949        115,636,033   
   

 

 

   

 

 

 
 

Specialty Chemicals — 2.0%

  

  51,000     

Air Products & Chemicals Inc.

    4,469,072        6,635,610   
  49,000     

Airgas Inc.

    3,258,784        6,777,680   
  36,000     

Ashland Inc.

    852,516        3,697,200   
  85,000     

Chemtura Corp.†

    2,083,797        2,317,950   
  134,000     

E. I. du Pont de Nemours and Co.

    5,888,648        8,924,400   
  500,000     

Ferro Corp.†

    3,761,790        5,560,000   
  75,000     

H.B. Fuller Co.

    2,863,282        2,735,250   
  89,000     

Olin Corp.

    1,629,332        1,536,140   
  5,000     

Praxair Inc.

    556,243        512,000   
  9,000     

The Chemours Co.

    58,593        48,240   
  94,000     

The Dow Chemical Co.

    3,601,870        4,839,120   
   

 

 

   

 

 

 
      29,023,927        43,583,590   
   

 

 

   

 

 

 
 

Telecommunications — 4.3%

  

  422,000     

AT&T Inc.

    12,953,258        14,521,020   
  238,479     

BCE Inc.

    6,191,026        9,210,059   
  480,000     

Deutsche Telekom AG, ADR

    8,166,522        8,582,400   
  37,357     

Harris Corp.

    2,948,703        3,246,323   
  195,000     

Hellenic Telecommunications

   
 

Organization SA, ADR

    1,323,723        926,250   
  40,500     

Loral Space & Communications Inc.†

    1,801,791        1,648,755   
  50,000     

Orange SA, ADR

    1,066,612        831,500   
  50,000     

Pharol SGPS SA†

    14,182        14,726   
  39,000     

Proximus SA

    1,195,261        1,271,504   

Shares

       

Cost

   

Market Value

 
  50,084     

Telefonica SA, ADR

  $ 718,792      $ 553,929   
  295,000     

Telekom Austria AG

    1,968,837        1,616,750   
  23,000     

Telenet Group Holding NV†

    1,046,305        1,244,020   
  148,000     

Telephone & Data Systems Inc.

    4,377,732        3,831,720   
  110,000     

Telstra Corp. Ltd., ADR

    2,014,389        2,235,200   
  135,000     

TELUS Corp.

    1,405,698        3,732,750   
  789,086     

Verizon Communications Inc.

    33,144,748        36,471,555   
  40,000     

VimpelCom Ltd., ADR

    230,241        131,200   
  171,545     

Vodafone Group plc, ADR

    7,746,959        5,534,042   
   

 

 

   

 

 

 
      88,314,779        95,603,703   
   

 

 

   

 

 

 
 

Transportation — 0.5%

  

  239,000     

GATX Corp.

    7,194,307        10,169,450   
  16,500     

Kansas City Southern

    277,030        1,232,055   
   

 

 

   

 

 

 
      7,471,337        11,401,505   
   

 

 

   

 

 

 
 

Wireless Communications — 0.4%

  

  3,000,000     

Cable & Wireless Communications plc

    2,301,248        3,286,011   
  124,000     

United States Cellular Corp.†

    5,499,141        5,060,440   
   

 

 

   

 

 

 
      7,800,389        8,346,451   
   

 

 

   

 

 

 
 

TOTAL COMMON STOCKS

    1,554,519,936        2,126,456,228   
   

 

 

   

 

 

 
 

CONVERTIBLE PREFERRED STOCKS — 0.4%

  

 

Broadcasting — 0.0%

  

  12,588     

Emmis Communications Corp., 6.250%, Ser. A

    453,121        20,393   
   

 

 

   

 

 

 
 

Energy and Utilities — 0.3%

  

  128,000     

El Paso Energy Capital Trust I,
4.750%

    4,617,789        5,272,000   
   

 

 

   

 

 

 
 

Financial Services — 0.0%

  

  1,500     

Doral Financial Corp., 4.750%

    202,379        1,125   
   

 

 

   

 

 

 
 

Telecommunications — 0.1%

  

  53,000     

Cincinnati Bell Inc., 6.750%, Ser. B

    1,813,938        2,541,880   
   

 

 

   

 

 

 
 

TOTAL CONVERTIBLE PREFERRED STOCKS

    7,087,227        7,835,398   
   

 

 

   

 

 

 
 

PREFERRED STOCKS — 0.1%

  

 

Health Care — 0.1%

  

  17,611     

AdCare Health Systems Inc., 10.875%, Ser. A

    338,053        387,442   
  121,653     

The Phoenix Companies Inc., 7.450%

    2,660,854        2,480,505   
   

 

 

   

 

 

 
      2,998,907        2,867,947   
   

 

 

   

 

 

 
 

TOTAL PREFERRED STOCKS

    2,998,907        2,867,947   
   

 

 

   

 

 

 

 

 

 

See accompanying notes to financial statements.

 

8


The Gabelli Dividend & Income Trust

Schedule of Investments (Continued) — December 31, 2015

 

 

Shares

       

Cost

   

Market

Value

 
 

RIGHTS — 0.0%

  

 

Retail — 0.0%

  

  400,000     

Safeway Casa Ley, CVR, expire 01/30/19†

  $ 68,714      $ 180,000   
  400,000     

Safeway PDC, CVR, expire 01/30/17†

    3,300        19,520   
   

 

 

   

 

 

 
 

TOTAL RIGHTS

    72,014        199,520   
   

 

 

   

 

 

 
 

WARRANTS — 0.0%

  

 
 

Energy and Utilities: Natural Gas — 0.0%

  

  306,400     

Kinder Morgan Inc., expire 05/25/17†

    520,734        18,415   
   

 

 

   

 

 

 

Principal
Amount

                 
 

CORPORATE BONDS — 0.7%

  

 

Aerospace — 0.2%

  

 
  $2,500,000     

Aerojet Rocketdyne Holdings Inc., Sub. Deb. 4.063%, 12/31/39

    3,309,239        4,346,875   
   

 

 

   

 

 

 
 

Diversified Industrial — 0.5%

  

  7,900,000     

Griffon Corp., Sub. Deb. 4.000%, 01/15/17(b)

    7,900,000        10,270,000   
   

 

 

   

 

 

 
 

Real Estate — 0.0%

  

 
  450,000     

Palm Harbor Homes Inc., 3.250%, 05/15/24

    422,927        67,207   
   

 

 

   

 

 

 
 

TOTAL CORPORATE BONDS

    11,632,166        14,684,082   
   

 

 

   

 

 

 
 

U.S. GOVERNMENT OBLIGATIONS — 2.1%

  

  47,071,000     

U.S. Treasury Bills, 0.000% to 0.536%††, 01/07/16 to 06/23/16

    47,017,405        47,023,126   
   

 

 

   

 

 

 

 

TOTAL INVESTMENTS — 100.0%

  $ 1,623,848,389        2,199,084,716   
   

 

 

   
    

Market

Value

 

Other Assets and Liabilities (Net)

   $ (887,069

PREFERRED STOCK
(5,603,095 preferred shares outstanding)

     (459,257,875
  

 

 

 

NET ASSETS — COMMON STOCK
(82,550,422 common shares outstanding)

   $ 1,738,939,772   
  

 

 

 

NET ASSET VALUE PER COMMON SHARE
($1,738,939,772 ÷ 82,550,422 shares outstanding)

   $ 21.07   
  

 

 

 

 

(a)

At December 31, 2015, the Fund held investments in a restricted and illiquid security amounting to $881,280 or 0.04% of total investments, which was valued under methods approved by the Board of Trustees as follows:

 

Acquisition

Shares

 

Issuer

  Acquisition
Date
    Acquisition
Cost
    12/31/15
Carrying
Value
Per Share
 

339,450

  Parmalat SpA, GDR     12/02/03      $ 981,615        $2.5962   

 

(b)

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2015, the market value of Rule 144A securities amounted to $11,151,280 or 0.51% of total investments.

Non-income producing security.

††

Represents annualized yield at date of purchase.

 

ADR

American Depositary Receipt

CVR

Contingent Value Right

GDR

Global Depositary Receipt

 

Geographic Diversification

   % of Total
Investments
  Market
Value

North America

       82.5 %     $ 1,814,989,698  

Europe

       12.9         284,229,696  

Japan

       3.3         72,299,277  

Latin America

       1.0         20,987,171  

Asia/Pacific

       0.3         6,578,874  
    

 

 

     

 

 

 

Total Investments

       100.0 %     $ 2,199,084,716  
    

 

 

     

 

 

 
 

 

See accompanying notes to financial statements.

 

9


The Gabelli Dividend & Income Trust

 

Statement of Assets and Liabilities

December 31, 2015

 

  

  

 

Assets:

  

Investments, at value (cost $1,623,848,389)

   $ 2,199,084,716   

Cash

     71,754   

Deposit at brokers

     8,346   

Dividends and interest receivable

     3,911,695   

Deferred offering expense

     38,400   

Prepaid expenses

     20,135   
  

 

 

 

Total Assets

     2,203,135,046   
  

 

 

 

Liabilities:

  

Distributions payable

     133,980   

Payable for investments purchased

     125,731   

Payable for investment advisory fees

     1,479,071   

Payable for payroll expenses

     96,567   

Payable for accounting fees

     7,500   

Payable for auction agent fees

     2,840,609   

Other accrued expenses

     253,941   
  

 

 

 

Total Liabilities

     4,937,399   
  

 

 

 

Cumulative Preferred Shares each at $0.001 par value:

  

Series A (5.875%, $25 liquidation value,
3,200,000 shares authorized with
3,048,019 shares issued and outstanding)

     76,200,475   

Series B (Auction Market, $25,000 liquidation value, 4,000 shares authorized with 3,600 shares issued and outstanding)

     90,000,000   

Series C (Auction Market, $25,000 liquidation value, 4,800 shares authorized with 4,320 shares issued and outstanding)

     108,000,000   

Series D (6.000%, $25 liquidation value,
2,600,000 shares authorized with
2,542,296 shares issued and outstanding)

     63,557,400   

Series E (Auction Rate, $25,000 liquidation value, 5,400 shares authorized with 4,860 shares issued and outstanding)

     121,500,000   
  

 

 

 

Total Preferred Shares

     459,257,875   
  

 

 

 

Net Assets Attributable to Common Shareholders

   $ 1,738,939,772   
  

 

 

 

Net Assets Attributable to Common Shareholders Consist of:

  

Paid-in capital

   $ 1,182,113,085   

Distributions in excess of net investment income

     (504,985

Distributions in excess of net realized gain on investments, securities sold short, and foreign currency transactions

     (17,891,047

Net unrealized appreciation on investments

     575,236,327   

Net unrealized depreciation on foreign currency translations

     (13,608
  

 

 

 

Net Assets

   $ 1,738,939,772   
  

 

 

 

Net Asset Value per Common Share at $0.001 par value:

  

($1,738,939,772 ÷ 82,550,422 shares outstanding; unlimited number of shares authorized)

   $ 21.07   
  

 

 

 

Statement of Operations

For the Year Ended December 31, 2015

 

  

  

 

Investment Income:

  

Dividends (net of foreign withholding taxes of $1,142,468)

   $ 50,203,076   

Interest

     446,478   
  

 

 

 

Total Investment Income

     50,649,554   
  

 

 

 

Expenses:

  

Investment advisory fees

     23,453,794   

Shareholder communications expenses

     386,995   

Payroll expenses

     284,944   

Custodian fees

     271,568   

Trustees’ fees

     239,500   

Legal and audit fees

     114,631   

Accounting fees

     45,000   

Shareholder services fees

     44,899   

Interest expense

     228   

Miscellaneous expenses

     267,110   
  

 

 

 

Total Expenses

     25,108,669   
  

 

 

 

Less:

  

Advisory fee reduction (See Note 3)

     (4,592,578

Expenses paid indirectly by broker
(See Note 3)

     (12,890
  

 

 

 

Total Reductions

     (4,605,468
  

 

 

 

Net Expenses

     20,503,201   
  

 

 

 

Net Investment Income

     30,146,353   
  

 

 

 

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, and Foreign Currency:

  

Net realized gain on investments

     56,628,820   

Net realized gain on securities sold short

     8,579   

Net realized loss on foreign currency transactions.

     (41,523
  

 

 

 

Net realized gain on investments, securities sold short, and foreign currency transactions

     56,595,876   
  

 

 

 

Net change in unrealized appreciation/depreciation:

  

on investments

     (177,077,471

on foreign currency translations

     7,317   
  

 

 

 

Net change in unrealized appreciation/
depreciation on investments and foreign currency translations

     (177,070,154
  

 

 

 

Net Realized and Unrealized Gain/(Loss) on Investments, Securities Sold Short, and Foreign Currency

     (120,474,278
  

 

 

 

Net Decrease in Net Assets Resulting from Operations

     (90,327,925
  

 

 

 

Total Distributions to Preferred Shareholders

     (14,845,583
  

 

 

 

Net Decrease in Net Assets Attributable to Common Shareholders Resulting from Operations

   $ (105,173,508
  

 

 

 
 

 

See accompanying notes to financial statements.

 

10


The Gabelli Dividend & Income Trust

Statements of Changes in Net Assets Attributable to Common Shareholders

 

 

     Year Ended   Year Ended
     December 31, 2015   December 31, 2014

Operations:

        

Net investment income

     $ 30,146,353       $ 33,904,297  

Net realized gain on investments, securities sold short, and foreign currency transactions

       56,595,876         176,431,063  

Net change in unrealized appreciation/depreciation on investments, and foreign currency translations

       (177,070,154 )       (48,739,391 )
    

 

 

     

 

 

 

Net Increase/(Decrease) in Net Assets Resulting from Operations

       (90,327,925 )       161,595,969  
    

 

 

     

 

 

 

Distributions to Preferred Shareholders:

        

Net investment income

       (4,771,830 )       (2,455,193 )

Net realized capital gain

       (10,073,753 )       (12,322,335 )
    

 

 

     

 

 

 

Total Distributions to Preferred Shareholders

       (14,845,583 )       (14,777,528 )
    

 

 

     

 

 

 

Net Increase/(Decrease) in Net Assets Attributable to Common Shareholders Resulting from Operations

       (105,173,508 )       146,818,441  
    

 

 

     

 

 

 

Distributions to Common Shareholders:

        

Net investment income

       (25,462,399 )       (32,446,114 )

Net realized capital gain

       (53,753,364 )       (162,843,318 )

Return of capital

       (23,380,488 )       (1,713,826 )
    

 

 

     

 

 

 

Total Distributions to Common Shareholders

       (102,596,251 )       (197,003,258 )
    

 

 

     

 

 

 

Fund Share Transactions:

        

Net decrease from repurchase of common shares.

       (4,322,267 )        
    

 

 

     

 

 

 

Net Decrease in Net Assets from Fund Share Transactions

       (4,322,267 )        
    

 

 

     

 

 

 

Net Decrease in Net Assets Attributable to Common Shareholders

       (212,092,026 )       (50,184,817 )

Net Assets Attributable to Common Shareholders:

        

Beginning of year

       1,951,031,798         2,001,216,615  
    

 

 

     

 

 

 

End of year (including undistributed net investment income of $0 and $0, respectively)

     $ 1,738,939,772       $ 1,951,031,798  
    

 

 

     

 

 

 

See accompanying notes to financial statements.

 

11


The Gabelli Dividend & Income Trust

Financial Highlights

 

 

Selected data for a common share of beneficial interest outstanding throughout each year:

 

     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Operating Performance:

                         

Net asset value, beginning of year

      $ 23.57         $ 24.18         $ 18.58         $ 17.24         $ 17.64   
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

        0.30           0.41           0.36           0.47           0.38   

Net realized and unrealized gain on investments, securities sold short, swap contracts, and foreign currency transactions

        (1.39        1.54           6.45           2.00           0.28   
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total from investment operations

        (1.09        1.95           6.81           2.47           0.66   
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions to Preferred Shareholders: (a)

                         

Net investment income

        (0.06        (0.03        (0.05        (0.09        (0.11

Net realized gain

        (0.12        (0.15        (0.13        (0.08        (0.05
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions to preferred shareholders

        (0.18        (0.18        (0.18        (0.17        (0.16
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Increase in Net Assets Attributable to Common Shareholders Resulting from Operations

        (1.27        1.77           6.63           2.30           0.50   
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions to Common Shareholders:

                         

Net investment income

        (0.31        (0.39        (0.31        (0.37        (0.27

Net realized gain on investments

        (0.65        (1.97        (0.72        (0.31        (0.14

Return of capital

        (0.28        (0.02                  (0.28        (0.49
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions to common shareholders

        (1.24        (2.38        (1.03        (0.96        (0.90
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Fund Share Transactions:

                         

Increase in net asset value from repurchase of common shares

        0.01                     0.00 (b)         0.00 (b)         0.00 (b) 
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total from Fund share transactions

        0.01                     0.00 (b)         0.00 (b)         0.00 (b) 
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Asset Value Attributable to Common Shareholders, End of Year

      $ 21.07         $ 23.57         $ 24.18         $ 18.58         $ 17.24   
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

NAV total return †

        (5.59 )%         7.48        36.47        14.40        3.61
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Market value, end of year

      $ 18.46         $ 21.66         $ 22.17         $ 16.18         $ 15.42   
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Investment total return ††

        (9.32 )%         8.82        44.38        11.38        6.42
     

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets and Supplemental Data:

                         

Net assets including liquidation value of preferred shares, end of year (in 000’s)

      $ 2,198,198         $ 2,410,290         $ 2,460,474         $ 1,998,057         $ 1,888,654   

Net assets attributable to common shares, end of year (in 000’s)

      $ 1,738,940         $ 1,951,032         $ 2,001,217         $ 1,538,799         $ 1,429,397   

Ratio of net investment income to average net assets attributable to common shares before preferred share distributions

        1.60        1.71        1.65        2.62        2.12

Ratio of operating expenses to average net assets attributable to common shares before fees waived

        1.33 %(c)         1.36        1.34        1.41        1.50

Ratio of operating expenses to average net assets attributable to common shares net of advisory fee reduction, if any

        1.09 %(c)         1.36        1.34        1.41        1.40

Ratio of operating expenses to average net assets including liquidation value of preferred shares before fees waived

        1.07 %(c)         1.10        1.07        1.08        1.14

Ratio of operating expenses to average net assets including liquidation value of preferred shares net of advisory fee reduction, if any

        0.88 %(c)         1.10        1.07        1.08        1.07

Portfolio turnover rate

        8.1        18.4        15.8        14.5        15.0

See accompanying notes to financial statements.

 

12


The Gabelli Dividend & Income Trust

Financial Highlights (Continued)

 

 

Selected data for a common share of beneficial interest outstanding throughout each year:

 

     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Preferred Stock:

                         

5.875% Series A Cumulative Preferred Shares

                         

Liquidation value, end of year (in 000’s)

        $ 76,201           $ 76,201           $ 76,200           $ 76,200           $ 76,200   

Total shares outstanding (in 000’s)

        3,048           3,048           3,048           3,048           3,048   

Liquidation preference per share

        $ 25.00           $ 25.00           $ 25.00           $ 25.00           $ 25.00   

Average market value (d)

        $ 25.63           $ 25.26           $ 25.31           $ 25.72           $ 25.30   

Asset coverage per share(e)

        $ 119.66           $ 131.21           $ 133.94           $ 108.77           $ 102.81   

Series B Auction Market Cumulative Preferred Shares

                         

Liquidation value, end of year (in 000’s)

        $ 90,000           $ 90,000           $ 90,000           $ 90,000           $ 90,000   

Total shares outstanding (in 000’s)

        4           4           4           4           4   

Liquidation preference per share

        $ 25,000           $ 25,000           $ 25,000           $ 25,000           $ 25,000   

Liquidation value (f)

        $ 25,000           $ 25,000           $ 25,000           $ 25,000           $ 25,000   

Asset coverage per share(e)

        $ 119,660           $ 131,206           $ 133,938           $ 108,766           $ 102,810   

Series C Auction Market Cumulative Preferred Shares

                         

Liquidation value, end of year (in 000’s)

        $ 108,000           $ 108,000           $ 108,000           $ 108,000           $ 108,000   

Total shares outstanding (in 000’s)

        4           4           4           4           4   

Liquidation preference per share

        $ 25,000           $ 25,000           $ 25,000           $ 25,000           $ 25,000   

Liquidation value (f)

        $ 25,000           $ 25,000           $ 25,000           $ 25,000           $ 25,000   

Asset coverage per share(e)

        $ 119,660           $ 131,206           $ 133,938           $ 108,766           $ 102,810   

6.000% Series D Cumulative Preferred Shares

                         

Liquidation value, end of year (in 000’s)

        $ 63,557           $ 63,557           $ 63,557           $ 63,557           $ 63,557   

Total shares outstanding (in 000’s)

        2,542           2,542           2,542           2,542           2,542   

Liquidation preference per share

        $ 25.00           $ 25.00           $ 25.00           $ 25.00           $ 25.00   

Average market value (d)

        $ 25.70           $ 25.53           $ 26.25           $ 26.79           $ 26.09   

Asset coverage per share(e)

        $ 119.66           $ 131.21           $ 133.94           $ 108.77           $ 102.81   

Series E Auction Rate Cumulative Preferred Shares

                         

Liquidation value, end of year (in 000’s)

        $ 121,500           $ 121,500           $ 121,500           $ 121,500           $ 121,500   

Total shares outstanding (in 000’s)

        5           5           5           5           5   

Liquidation preference per share

        $ 25,000           $ 25,000           $ 25,000           $ 25,000           $ 25,000   

Liquidation value (f)

        $ 25,000           $ 25,000           $ 25,000           $ 25,000           $ 25,000   

Asset coverage per share(e)

        $ 119,660           $ 131,206           $ 133,938           $ 108,766           $ 102,810   

Asset Coverage (g)

        479        525        536        435        411

 

For the years ended 2015, 2014, and 2013 based on net asset value per share and reinvestment of distributions at net asset value on the ex-dividend date. The years ended 2012 and 2011 were based on net asset value per share, adjusted for reinvestment of distributions at prices obtained under the Fund’s dividend reinvestment plan.

††

Based on market value per share, adjusted for reinvestment of distributions at prices obtained under the Fund’s dividend reinvestment plan.

(a)

Calculated based upon average common shares outstanding on the record dates throughout the year.

(b)

Amount represents less than $0.005 per share.

(c)

The Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. For the year ended December 31, 2015, there was no impact on the expense ratios.

(d)

Based on weekly prices.

(e)

Asset coverage per share is calculated by combining all series of preferred shares.

(f)

Since February 2008, the weekly auctions have failed. Holders that have submitted orders have not been able to sell any or all of their shares in the auction.

(g)

Asset coverage is calculated by combining all series of preferred shares.

 

See accompanying notes to financial statements.

 

13


The Gabelli Dividend & Income Trust

Notes to Financial Statements

 

 

1. Organization. The Gabelli Dividend & Income Trust (the “Fund”) currently operates as a diversified closed-end management investment company organized as a Delaware statutory trust on November 18, 2003 and registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Investment operations commenced on November 28, 2003.

The Fund’s investment objective is to provide a high level of total return on its assets with an emphasis on dividends and income. The Fund will attempt to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in dividend paying securities (such as common and preferred stock) or other income producing securities (such as fixed income debt securities and securities that are convertible into equity securities).

2. Significant Accounting Policies. As an investment company, the Fund follows the investment company accounting and reporting guidance, which is part of U.S. generally accepted accounting principles (“GAAP”) that may require the use of management estimates and assumptions in the preparation of its financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Security Valuation. Portfolio securities listed or traded on a nationally recognized securities exchange or traded in the U.S. over-the-counter market for which market quotations are readily available are valued at the last quoted sale price or a market’s official closing price as of the close of business on the day the securities are being valued. If there were no sales that day, the security is valued at the average of the closing bid and asked prices or, if there were no asked prices quoted on that day, then the security is valued at the closing bid price on that day. If no bid or asked prices are quoted on such day, the security is valued at the most recently available price or, if the Board of Trustees (the “Board”) so determines, by such other method as the Board shall determine in good faith to reflect its fair market value. Portfolio securities traded on more than one national securities exchange or market are valued according to the broadest and most representative market, as determined by Gabelli Funds, LLC (the “Adviser”).

Portfolio securities primarily traded on a foreign market are generally valued at the preceding closing values of such securities on the relevant market, but may be fair valued pursuant to procedures established by the Board if market conditions change significantly after the close of the foreign market, but prior to the close of business on the day the securities are being valued. Debt instruments with remaining maturities of sixty days or less that are not credit impaired are valued at amortized cost, unless the Board determines such amount does not reflect the securities’ fair value, in which case these securities will be fair valued as determined by the Board. Debt instruments having a maturity greater than sixty days for which market quotations are readily available are valued at the average of the latest bid and asked prices. If there were no asked prices quoted on such day, the security is valued using the closing bid price. U.S. government obligations with maturities greater than sixty days are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations.

Securities and assets for which market quotations are not readily available are fair valued as determined by the Board. Fair valuation methodologies and procedures may include, but are not limited to: analysis and review of available financial and non-financial information about the company; comparisons with the valuation and changes in valuation of similar securities, including a comparison of foreign securities with the equivalent U.S.

 

14


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

dollar value American Depositary Receipt securities at the close of the U.S. exchange; and evaluation of any other information that could be indicative of the value of the security.

The inputs and valuation techniques used to measure fair value of the Fund’s investments are summarized into three levels as described in the hierarchy below:

   

Level 1 — quoted prices in active markets for identical securities;

   

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and

   

Level 3 — significant unobservable inputs (including the Board’s determinations as to the fair value of investments).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of the Fund’s investments in securities by inputs used to value the Fund’s investments as of December 31, 2015 is as follows:

 

    Valuation Inputs    
    Level 1   Level 2 Other Significant   Level 3 Significant   Total Market Value
    Quoted Prices   Observable Inputs   Unobservable Inputs   at 12/31/15

INVESTMENTS IN SECURITIES:

               

ASSETS (Market Value):

               

Common Stocks:

               

Aerospace

    $ 38,515,772       $ 181,073               $ 38,696,845  

Energy and Utilities: Integrated

      43,798,673               $ 54,501         43,853,174  

Food and Beverage

      288,286,604         881,280                 289,167,884  

Other Industries (a)

      1,754,738,325                         1,754,738,325  

Total Common Stocks

      2,125,339,374         1,062,353         54,501         2,126,456,228  

Preferred Stocks (a)

      2,867,947                         2,867,947  

Convertible Preferred Stocks

               

Energy and Utilities

              5,272,000                 5,272,000  

Financial Services

                      1,125         1,125  

Other Industries (a)

      2,562,273                         2,562,273  

Total Preferred Stocks and Convertible Preferred Stocks

      5,430,220         5,272,000         1,125         10,703,345  

Rights (a)

                      199,520         199,520  

Warrants (a)

      18,415                         18,415  

Corporate Bonds (a)

              14,616,875         67,207         14,684,082  

U.S. Government Obligations

              47,023,126                 47,023,126  

TOTAL INVESTMENTS IN SECURITIES – ASSETS

    $ 2,130,788,009       $ 67,974,354       $ 322,353       $ 2,199,084,716  

 

(a)

Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings.

During the year ended December 31, 2015, the Fund had transfers of $8,743,609 or 0.45% of net assets as of December 31, 2014, from Level 1 to Level 2. Transfers from Level 1 to Level 2 are due to a decline in market activity (e.g. frequency of trades), which resulted in a lack of available market inputs to determine price. The Fund’s policy is to recognize transfers among Levels as of the beginning of the reporting period.

 

15


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

Additional Information to Evaluate Qualitative Information.

General. The Fund uses recognized industry pricing services – approved by the Board and unaffiliated with the Adviser – to value most of its securities, and uses broker quotes provided by market makers of securities not valued by these and other recognized pricing sources. Several different pricing feeds are received to value domestic equity securities, international equity securities, preferred equity securities, and fixed income securities. The data within these feeds is ultimately sourced from major stock exchanges and trading systems where these securities trade. The prices supplied by external sources are checked by obtaining quotations or actual transaction prices from market participants. If a price obtained from the pricing source is deemed unreliable, prices will be sought from another pricing service or from a broker/dealer that trades that security or similar securities.

Fair Valuation. Fair valued securities may be common and preferred equities, warrants, options, rights, and fixed income obligations. Where appropriate, Level 3 securities are those for which market quotations are not available, such as securities not traded for several days, or for which current bids are not available, or which are restricted as to transfer. Among the factors to be considered to fair value a security are recent prices of comparable securities that are publicly traded, reliable prices of securities not publicly traded, the use of valuation models, current analyst reports, valuing the income or cash flow of the issuer, or cost if the preceding factors do not apply. A significant change in the unobservable inputs could result in a lower or higher value in Level 3 securities. The circumstances of Level 3 securities are frequently monitored to determine if fair valuation measures continue to apply.

The Adviser reports quarterly to the Board the results of the application of fair valuation policies and procedures. These may include back testing the prices realized in subsequent trades of these fair valued securities to fair values previously recognized.

Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by investing in a number of derivative financial instruments for the purposes of achieving additional return or of hedging the value of the Fund’s portfolio, increasing the income of the Fund, hedging or protecting its exposure to interest rate movements and movements in the securities markets, managing risks, protecting the value of its portfolio against uncertainty in the level of future currency exchange rates, or hedging a specific transaction with respect to either the currency in which the transaction is denominated or another currency. Investing in certain derivative financial instruments, including participation in the options, futures, or swap markets, entails certain execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks. Losses may arise if the Adviser’s prediction of movements in the direction of the securities, foreign currency, and interest rate markets is inaccurate. Losses may also arise if the counterparty does not perform its duties under a contract, or that, in the event of default, the Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to it under derivative contracts. The creditworthiness of the counterparties is closely monitored in order to minimize these risks. Participation in derivative transactions involves investment risks, transaction costs, and potential losses to which the Fund would not be subject absent the use of these strategies. The consequences of these risks, transaction costs, and losses may have a negative impact on the Fund’s ability to pay distributions.

The Fund’s derivative contracts held at December 31, 2015, if any, are not accounted for as hedging instruments under GAAP and are disclosed in the Schedule of Investments together with the related counterparty.

 

16


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

Limitations on the Purchase and Sale of Futures Contracts, Certain Options, and Swaps. Subject to the guidelines of the Board, the Fund may engage in “commodity interest” transactions (generally, transactions in futures, certain options, certain currency transactions, and certain types of swaps) only for bona fide hedging or other permissible transactions in accordance with the rules and regulations of the Commodity Futures Trading Commission (“CFTC”). Pursuant to amendments by the CFTC to Rule 4.5 under the Commodity Exchange Act (“CEA”), the Adviser has filed a notice of exemption from registration as a “commodity pool operator” with respect to the Fund. The Fund and the Adviser are therefore not subject to registration or regulation as a commodity pool operator under the CEA. In addition, certain trading restrictions are now applicable to the Fund as of January 1, 2013. These trading restrictions permit the Fund to engage in commodity interest transactions that include (i) “bona fide hedging” transactions, as that term is defined and interpreted by the CFTC and its staff, without regard to the percentage of the Fund’s assets committed to margin and options premiums and (ii) non-bona fide hedging transactions, provided that the Fund does not enter into such non-bona fide hedging transactions if, immediately thereafter, either (a) the sum of the amount of initial margin deposits on the Fund’s existing futures positions or swaps positions and option or swaption premiums would exceed 5% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions, or (b) the aggregate net notional value of the Fund’s commodity interest transactions would not exceed 100% of the market value of the Fund’s liquidating value, after taking into account unrealized profits and unrealized losses on any such transactions. Therefore, in order to claim the Rule 4.5 exemption, the Fund is limited in its ability to invest in commodity futures, options, and certain types of swaps (including securities futures, broad based stock index futures, and financial futures contracts). As a result, in the future, the Fund will be more limited in its ability to use these instruments than in the past, and these limitations may have a negative impact on the ability of the Adviser to manage the Fund, and on the Fund’s performance.

Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves selling securities that may or may not be owned and, at times, borrowing the same securities for delivery to the purchaser, with an obligation to replace such borrowed securities at a later date. The proceeds received from short sales are recorded as liabilities and the Fund records an unrealized gain or loss to the extent of the difference between the proceeds received and the value of an open short position on the day of determination. The Fund records a realized gain or loss when the short position is closed out. By entering into a short sale, the Fund bears the market risk of an unfavorable change in the price of the security sold short. Dividends on short sales are recorded as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual basis. The broker retains collateral for the value of the open positions, which is adjusted periodically as the value of the position fluctuates.

Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S. dollars at current exchange rates. Purchases and sales of investment securities, income, and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or changes in market prices of securities have been included in unrealized appreciation/depreciation on investments and foreign currency translations. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference

 

17


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

between the amounts of interest and dividends recorded on the books of the Fund and the amounts actually received. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade date is included in realized gain/(loss) on investments.

Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to repatriate funds, less complete financial information about companies, and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Restricted Securities. The Fund is not subject to an independent limitation on the amount it may invest in securities for which the markets are restricted. Restricted securities include securities whose disposition is subject to substantial legal or contractual restrictions. The sale of restricted securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. Restricted securities may sell at a price lower than similar securities that are not subject to restrictions on resale. Securities freely saleable among qualified institutional investors under special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards established by the Board. The continued liquidity of such securities is not as well assured as that of publicly traded securities, and accordingly the Board will monitor their liquidity. For restricted securities the Fund held as of December 31, 2015, refer to the Schedule of Investments.

Securities Transactions and Investment Income. Securities transactions are accounted for on the trade date with realized gain/(loss) on investments determined by using the identified cost method. Interest income (including amortization of premium and accretion of discount) is recorded on the accrual basis. Premiums and discounts on debt securities are amortized using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities that are recorded as soon after the ex-dividend date as the Fund becomes aware of such dividends.

Custodian Fee Credits. When cash balances are maintained in the custody account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid under the custody arrangement are included in custodian fees in the Statement of Operations with the corresponding expense offset, if any, shown as “Custodian fee credits.”

Distributions to Shareholders. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to shareholders are based on income and capital gains as determined in accordance with federal income tax regulations, which may differ from income and capital gains as determined under GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences, and differing characterizations of distributions made by the Fund. Distributions from net investment income for federal income tax purposes include net realized gains on foreign currency transactions. These book/tax differences are either temporary or permanent in nature. To the extent these

 

18


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

differences are permanent, adjustments are made to the appropriate capital accounts in the period when the differences arise. These reclassifications have no impact on the NAV of the Fund. For the year ended December 31, 2015, reclassifications were made to decrease distributions in excess of net investment income by $205,076 and increase distributions in excess of net realized gain on investments and foreign currency transactions by $47,261, with an offsetting adjustment to paid-in capital.

Under the Fund’s current common share distribution policy, the Fund declares and pays monthly distributions from net investment income, capital gains, and paid-in capital. The actual source of the distribution is determined after the end of the calendar year. Pursuant to this policy, distributions during the year may be made in excess of required distributions. To the extent such distributions are made from current earnings and profits, they are considered ordinary income or long term capital gains. The Fund’s current distribution policy may restrict the Fund’s ability to pass through to shareholders all of its net realized long term capital gains as a Capital Gain Distribution, subject to the maximum federal income tax rate and may cause such gains to be treated as ordinary income. Distributions sourced from paid-in capital should not be considered as dividend yield or the total return from an investment in the Fund. The Board will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s distribution policy is subject to modification by the Board at any time.

On January 22, 2014, the Fund contributed $100,000 in cash in exchange for 8,333 shares of the Gabelli Global Small and Mid Cap Value Trust (the “Global Trust”). On June 23, 2014, the Fund contributed an additional $99,229,373 in cash in exchange for shares of the Global Trust, and on the same date distributed such shares to holders of the Fund on record as of June 16, 2014 at the rate of one common share of the Global Trust for every ten common shares of the Fund’s common shares.

Distributions to shareholders of the Fund’s 5.875% Series A Preferred Shares, Series B Auction Market Preferred Shares, Series C Auction Market Preferred Shares, 6.000% Series D Cumulative Preferred Shares, and Series E Auction Rate Preferred Shares (“Preferred Shares”) are recorded on a daily basis and are determined as described in Note 5.

The tax character of distributions paid during the years ended December 31, 2015 and 2014 was as follows:

 

     Year Ended
December 31, 2015
     Year Ended
December 31, 2014
 
     Common      Preferred      Common      Preferred  

Distributions paid from:

           

Ordinary income

   $ 27,764,357       $ 5,203,233       $ 37,800,576       $ 2,860,365   

Net long term capital gains

     51,451,406         9,642,350         157,488,856         11,917,163   

Return of capital

     23,380,488                 1,713,826           
  

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions paid

   $ 102,596,251       $ 14,845,583       $ 197,003,258       $ 14,777,528   
  

 

 

    

 

 

    

 

 

    

 

 

 

Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the policy of the Fund to comply with the requirements of the Code applicable to regulated investment companies and to distribute substantially all of its net investment company taxable income and net capital gains. Therefore, no provision for federal income taxes is required.

 

19


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

As of December 31, 2015, the components of accumulated earnings/losses on a tax basis were as follows:

 

Net unrealized appreciation on investments and foreign currency translations

   $ 556,960,667   

Other temporary differences(a)

     (133,980
  

 

 

 

Total

   $ 556,826,687   
  

 

 

 

 

(a)

Other temporary differences are due to adjustments on distributions payable.

The Fund is permitted to carry capital losses forward for an unlimited period. Capital losses that are carried forward will retain their character as either short term or long term capital losses.

At December 31, 2015, the temporary differences between book basis and tax basis net unrealized appreciation on investments were primarily due to deferral of losses from wash sales for tax purposes and basis adjustments in partnerships and hybrid securities.

The following summarizes the tax cost of investments and the related net unrealized appreciation at December 31, 2015:

 

            Gross      Gross        
     Cost/      Unrealized      Unrealized     Net Unrealized  
     Proceeds      Appreciation      Depreciation     Appreciation  

Investments

     $1,642,110,441         $692,582,906         $(135,608,631     $556,974,275   

The Fund is required to evaluate tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Income tax and related interest and penalties would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. During the year ended December 31, 2015, the Fund did not incur any income tax, interest, or penalty. As of December 31, 2015, the Adviser has reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or results of operations. The Fund’s federal and state tax returns for the prior three fiscal years remain open, subject to examination. On an ongoing basis, the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion are necessary.

3. Agreements and Transactions with Affiliates. The Fund has entered into an investment advisory agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of the Fund’s average weekly net assets including the liquidation value of preferred shares. In accordance with the Advisory Agreement, the Adviser provides a continuous investment program for the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and affairs.

The Adviser has agreed to reduce the management fee on the incremental assets attributable to the Preferred Shares if the total return of the NAV of the common shares of the Fund, including distributions and advisory fee subject to reduction, does not exceed the stated dividend rate or corresponding swap rate of each particular series of the Preferred Shares for the year. The Fund’s total return on the NAV of the common shares is monitored on a monthly basis to assess whether the total return on the NAV of the common shares exceeds the stated dividend rate or corresponding swap rate of each particular series of Preferred Shares for the period. For the year ended December 31, 2015, the Fund’s total return on the NAV of the common shares did not exceed the stated dividend rate or corresponding swap rate of the outstanding Preferred Shares. Thus, advisory fees with respect to the liquidation value of the Preferred assets was reduced by $4,592,578.

 

20


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

During the year ended December 31, 2015, the Fund paid brokerage commissions on security trades of $45,681 to G.research, LLC, an affiliate of the Adviser.

During the year ended December 31, 2015, the Fund received credits from a designated broker who agreed to pay certain Fund operating expenses. The amount of such expenses paid through this directed brokerage arrangement during this period was $12,890.

The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory Agreement. During the year ended December 31, 2015, the Fund paid or accrued $45,000 to the Adviser in connection with the cost of computing the Fund’s NAV.

As per the approval of the Board, the Fund compensates officers of the Fund, who are employed by the Fund and are not employed by the Adviser (although the officers may receive incentive based variable compensation from affiliates of the Adviser). During the year ended December 31, 2015 the Fund paid or accrued $284,944 in payroll expenses in the Statement of Operations.

The Fund pays each Trustee who is not considered an affiliated person an annual retainer of $18,000 plus $2,000 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000 per meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Proxy Voting Committee Chairman receives an annual fee of $1,500, the Nominating Committee Chairman and the Lead Trustee each receive an annual fee of $2,000. A Trustee may receive a single meeting fee, allocated among the participating funds, for participation in certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.

4. Portfolio Securities. Purchases and sales of securities during the year ended December 31, 2015, other than short term securities and U.S. Government obligations, aggregated $185,352,257, and $288,011,644, respectively.

5. Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial interest (par value $0.001). The Board has authorized the repurchase and retirement of its shares on the open market when the shares are trading at a discount of 7.5% or more (or such other percentage as the Board may determine from time to time) from the NAV of the shares. During the year ended December 31, 2015, the Fund repurchased and retired 224,056 common shares in the open market at a cost of $4,322,267 and an average discount of approximately 12.68% from its NAV. The Fund did not repurchase any common shares for the year ended December 31, 2014.

 

     Year Ended
December 31, 2015
 
    

Shares

   

Amount

 

Net decrease from repurchase of common shares

     (224,056   $ (4,322,267

A shelf registration authorizing the offering of an additional $500 million of common or preferred shares or notes was declared effective by the SEC on June 11, 2013.

The Fund’s Declaration of Trust, as amended, authorizes the issuance of an unlimited number of shares of $0.001 par value Preferred Shares. The Preferred Shares are senior to the common shares and result in the financial leveraging of the common shares. Such leveraging tends to magnify both the risks and opportunities

 

21


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

to common shareholders. Dividends on the Preferred Shares are cumulative. The Fund is required by the 1940 Act and by the Statements of Preferences to meet certain asset coverage tests with respect to the Preferred Shares. If the Fund fails to meet these requirements and does not correct such failure, the Fund may be required to redeem, in part or in full, the Series A, Series B, Series C, Series D, and Series E Preferred Shares at redemption prices of $25, $25,000, $25,000, $25, and $25,000, respectively, per share plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage requirements could restrict the Fund’s ability to pay dividends to common shareholders and could lead to sales of portfolio securities at inopportune times. The income received on the Fund’s assets may vary in a manner unrelated to the fixed and variable rates, which could have either a beneficial or detrimental impact on net investment income and gains available to common shareholders.

For Series B, Series C, and Series E Preferred Shares, the dividend rates, as set by the auction process that is generally held every seven days, are expected to vary with short term interest rates. Since February 2008, the number of Series B, Series C, and Series E Preferred Shares subject to bid orders by potential holders has been less than the number of shares of Series B, Series C, and Series E Preferred Shares subject to sell orders. Holders that have submitted sell orders have not been able to sell any or all of the Series B, Series C, and Series E Preferred Shares for which they have submitted sell orders. Therefore the weekly auctions have failed, and the dividend rate has been the maximum rate. The current maximum rate for Series B, Series C, and Series E Preferred Shares is 150, 150, and 250, respectively, basis points greater than the seven day Telerate/British Bankers Association LIBOR rate on the date of such auction. Existing Series B, Series C, and Series E Preferred shareholders may submit an order to hold, bid, or sell such shares on each auction date, or trade their shares in the secondary market. There were no redemptions of Series B, Series C, and Series E Preferred Shares during the year ended December 31, 2015.

The Fund may redeem in whole or in part the 5.875% Series A and 6.000% Series D Preferred Shares at the redemption price at any time. The Board has authorized the repurchase of Series A and Series D Preferred Shares in the open market at prices less than the $25 liquidation value per share. During the year ended December 31, 2015, the Fund did not repurchase any shares of Series A or Series D Preferred Shares.

The following table summarizes Cumulative Preferred Stock information:

 

                 Number of Shares                 Dividend      Accrued  
          Issued/      Outstanding at      Net      2015 Dividend   Rate at      Dividend at  

Series

   Issue Date    Authorized      12/31/15      Proceeds      Rate Range   12/31/15      12/31/15  

A 5.875%

   October 12, 2004      3,200,000         3,048,019           $ 77,280,971       Fixed Rate     5.875%          $49,742     

B Auction Market

   October 12, 2004      4,000         3,600             98,858,617       1.633% to 1.890%     1.885%          9,425     

C Auction Market

   October 12, 2004      4,800         4,320             118,630,341       1.634% to 1.890%     1.890%          22,680     

D 6.000%

   November 3, 2005      2,600,000         2,542,296             62,617,239       Fixed Rate     6.000%          42,372     

E Auction Rate

   November 3, 2005      5,400         4,860             133,379,387       2.634% to 2.892%     2.892%          9,761     

The holders of Preferred Shares generally are entitled to one vote per share held on each matter submitted to a vote of shareholders of the Fund and will vote together with holders of common shares as a single class. The holders of Preferred Shares voting together as a single class also have the right currently to elect two Trustees and under certain circumstances are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a majority of the votes entitled to be cast by holders of all outstanding shares of the Preferred Shares, voting as a single class, will be required to approve any plan of reorganization adversely

 

22


The Gabelli Dividend & Income Trust

Notes to Financial Statements (Continued)

 

 

affecting the Preferred Shares, and the approval of two-thirds of each class, voting separately, of the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an open-end investment company. The approval of a majority (as defined in the 1940 Act) of the outstanding Preferred Shares and a majority (as defined in the 1940 Act) of the Fund’s outstanding voting securities are required to approve certain other actions, including changes in the Fund’s investment objectives or fundamental investment policies.

6. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

7. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events occurring through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

23


The Gabelli Dividend & Income Trust

Report of Independent Registered Public Accounting Firm

 

 

To the Board of Trustees and Shareholders of

The Gabelli Dividend & Income Trust:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets attributable to common shareholders and the financial highlights present fairly, in all material respects, the financial position of The Gabelli Dividend & Income Trust (hereafter referred to as the “Fund”) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

New York, New York

February 26, 2016

 

24


The Gabelli Dividend & Income Trust

Additional Fund Information (Unaudited)

 

 

The business and affairs of the Fund are managed under the direction of the Fund’s Board of Trustees. Information pertaining to the Trustees and officers of the Fund is set forth below. The Fund’s Statement of Additional Information includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling 800-GABELLI (800-422-3554) or by writing to The Gabelli Dividend & Income Trust at One Corporate Center, Rye, NY 10580-1422.

 

Name, Position(s)    Term of Office    Number of Funds          
Address 1    and Length of    in Fund Complex    Principal Occupation(s)    Other Directorships

and Age

  

Time Served 2

  

Overseen by Trustee

  

During Past Five Years

  

Held by Trustee 4

INTERESTED TRUSTEES 3 :

                   

Mario J. Gabelli, CFA

Trustee and

Chief Investment Officer

Age: 73

   Since 2003*    29    Chairman, Chief Executive Officer, and
Chief Investment Officer–Value Portfolios
of GAMCO Investors, Inc. and Chief
Investment Officer–Value Portfolios of
Gabelli Funds, LLC and GAMCO Asset
Management Inc.; Director/Trustee or
Chief Investment Officer of other
registered investment companies within
the Gabelli/GAMCO Fund Complex;
Chief Executive Officer of GGCP, Inc.;
Chief Executive Officer and Chairman of
the Board of Associated Capital Group,
Inc.
   Director of Morgan Group Holdings, Inc.
(holding company); Chairman of the
Board and Chief Executive Officer of
LICT Corp. (multimedia and
communication services company);
Director of CIBL, Inc. (broadcasting and
wireless communications); Director of
ICTC Group Inc. (communications);
Director of RLJ Acquisition Inc. (blank
check company) (2011-2012)

Edward T. Tokar

Trustee

Age: 68

   Since 2003***    2    Senior Managing Director of Beacon
Trust Company (trust services); Chief
Executive Officer of Allied Capital
Management LLC (1977-2004); Vice
President of Honeywell International Inc.
(1977-2004)
   Director of CH Energy Group (energy
services) (2009-2013); Director, Teton
Advisors, Inc. (financial services) (2008-
2010)

INDEPENDENT TRUSTEES 5 :

                   

Anthony J. Colavita
Trustee

Age: 80

   Since 2003**    36    President of the law firm of Anthony
J. Colavita, P.C.
  

James P. Conn

Trustee

Age: 77

   Since 2003***    22    Former Managing Director and Chief
Investment Officer of Financial
Security Assurance Holdings Ltd.
(1992-1998)
  

Frank J. Fahrenkopf, Jr.
Trustee

Age: 76

   Since 2003**    9    Co-Chairman of the Commission on
Presidential Debates; Former
President and Chief Executive Officer
of the American Gaming Association
(1995-2013); Former Chairman of the
Republican National Committee
(1983-1989)
   Director of First Republic Bank
(banking)

Michael J. Melarkey

Trustee

Age: 66

   Since 2003*    7    Of Counsel McDonald Carano Wilson
LLP; Partner in the law firm of
Avansino, Melarkey, Knobel, Mulligan
& McKenzie (1976-2015); Owner in
Pioneer Crossing Casino Group
   Director of Southwest Gas
Corporation (natural gas utility)

Salvatore M. Salibello
Trustee

Age: 70

   Since 2003***    3    Senior Partner of Bright Side
Consulting (consulting); Certified
Public Accountant and Managing
Partner of the certified public
accounting firm of Salibello & Broder
LLP (1978-2012); Partner of BDO
Seidman, LLP (2012-2013)
   Director of Kid Brands, Inc.
(consumer products)

Anthonie C. van Ekris
Trustee

Age: 81

   Since 2003**    22    Chairman and Chief Executive Officer
of BALMAC International, Inc. (global
import/export company)
  

Salvatore J. Zizza

Trustee

Age: 70

   Since 2003**    30    President of Zizza & Associates Corp.
(financial consulting); Chairman of
Harbor Diversified, Inc.
(pharmaceuticals); Chairman of BAM
(semiconductor and aerospace
manufacturing); Chairman of Bergen
Cove Realty Inc.; Chairman of
Metropolitan Paper Recycling Inc.
(recycling) (2005-2014)
   Director and Vice Chairman of Trans-
Lux Corporation (business services);
Director and Chairman of Harbor
Diversified Inc. (pharmaceuticals);
Director, Chairman, and CEO of
General Employment Enterprises
(staffing services) (2009-2012)

 

25


The Gabelli Dividend & Income Trust

Additional Fund Information (Continued) (Unaudited)

 

 

Name, Position(s)

Address 1

and Age

  

Term of Office
and Length of
Time Served 2

  

Principal Occupation(s)

During Past Five Years

OFFICERS:

         

Bruce N. Alpert

President

Age: 64

   Since 2003    Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since 1988; Officer of several registered investment companies within the Gabelli/GAMCO Fund Complex; Senior Vice President of GAMCO Investors, Inc. since 2008; Director of Teton Advisors, Inc., 1998-2012; Chairman of Teton Advisors, Inc., 2008-2010; President of Teton Advisors, Inc., 1998-2008

Andrea R. Mango

Vice President and

Secretary

Age: 43

   SInce 2013    Counsel of Gabelli Funds, LLC since 2013; Secretary of all registered investment companies within the Gabelli/GAMCO Fund Complex since 2013; Vice President of all closed-end funds within the Gabelli/GAMCO Fund Complex since 2014; Corporate Vice President within the Corporate Compliance Department of New York Life Insurance Company, 2011-2013; Vice President and Counsel of Deutsche Bank, 2006-2011

Agnes Mullady

Treasurer

Age: 57

   Since 2006    President and Chief Operating Officer of the Fund Division of Gabelli Funds, LLC since 2015; Chief Executive Officer of G.distributors, LLC since 2010; Senior Vice President of GAMCO Investors, Inc. since 2009; Vice President of Gabelli Funds, LLC since 2007; Officer of all of the registered investment companies within the Gabelli/GAMCO Fund Complex

Richard J. Walz

Chief Compliance Officer

Age: 56

   Since 2013    Chief Compliance Officer of all of the registered investment companies within the Gabelli/ GAMCO Fund Complex since 2013; Chief Compliance Officer of AEGON USA Investment Management, 2011-2013; Chief Compliance Officer of Cutwater Asset Management, 2004- 2011

Carter W. Austin

Vice President and

Ombudsman

Age: 49

   Since 2003    Vice President and/or Ombudsman of closed-end funds within the Gabelli/GAMCO Fund Complex; Senior Vice President of Gabelli Funds, LLC since 2015

Laurissa M. Martire

Vice President and

Ombudsman

Age: 39

   Since 2011    Vice President and/or Ombudsman of closed-end funds within the Gabelli/GAMCO Fund Complex; Assistant Vice President of GAMCO Investors, Inc. since 2003

David I. Schachter

Vice President

Age: 62

   Since 2011    Vice President and/or Ombudsman of closed-end funds within the Gabelli/GAMCO Fund Complex; Senior Vice President of Gabelli Funds, LLC since 2015

 

1

Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.

2

The Fund’s Board of Trustees is divided into three classes, each class having a term of three years. Each year the term of office of one class expires and the successor or successors elected to such class serve for a three year term. The three year term for each class expires as follows:

  *

– Term expires at the Fund’s 2016 Annual Meeting of Shareholders or until their successors are duly elected and qualified.

  **

– Term expires at the Fund’s 2017 Annual Meeting of Shareholders or until their successors are duly elected and qualified.

  ***

– Term expires at the Fund’s 2018 Annual Meeting of Shareholders or until their successors are duly elected and qualified.

  

Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his or her successor is elected and qualified.

3

“Interested person” of the Fund, as defined in the 1940 Act. Mr. Gabelli is considered an “interested person” because of his affiliation with Gabelli Funds, LLC which acts as the Fund’s investment adviser. Mr. Tokar is an “interested person”.

4

This column includes only directorships of companies required to report to the SEC under the Securities Exchange Act of 1934, as amended, i.e., public companies, or other investment companies registered under the 1940 Act.

5

Trustees who are not interested persons are considered “Independent” Trustees.

 

26


THE GABELLI DIVIDEND & INCOME TRUST

INCOME TAX INFORMATION (Unaudited)

December 31, 2015

Cash Dividends and Distributions

 

          Total Amount    Ordinary    Long Term         Dividend
Payable    Record    Paid    Investment    Capital    Return of    Reinvestment

Date

  

Date

  

Per Share(a)

  

Income(a)

  

Gains

  

Capital(b)

  

Price

Common Shares

              

                01/23/15

   01/15/15    $0.10000    $0.02712    $0.05013    $0.02275    $21.19730

                02/20/15

   02/12/15    0.10000    0.02712    0.05013    0.02275    21.79330

                03/24/15

   03/17/15    0.10000    0.02712    0.05013    0.02275    21.22630

                04/23/15

   04/16/15    0.10000    0.02712    0.05013    0.02275    21.64950

                05/21/15

   05/14/15    0.10000    0.02712    0.05013    0.02275    21.72090

                06/23/15

   06/16/15    0.10000    0.02712    0.05013    0.02275    21.39450

                07/24/15

   07/17/15    0.10000    0.02712    0.05013    0.02275    20.08740

                08/24/15

   08/17/15    0.10000    0.02712    0.05013    0.02275    18.13270

                09/23/15

   09/16/15    0.11000    0.02984    0.05514    0.02502    17.77520

                10/23/15

   10/16/15    0.11000    0.02984    0.05514    0.02502    19.30700

                11/20/15

   11/13/15    0.11000    0.02984    0.05514    0.02502    19.02900

                12/18/15

   12/11/15    0.11000    0.02984    0.05514    0.02502    17.94230
     

 

  

 

  

 

  

 

  
      $1.24000    $0.33632    $0.62160    $0.28208   

5.875% Series A Cumulative Preferred Shares

              

                03/26/15

   03/19/15    $0.36719    $0.12894    $0.23825      

                06/26/15

   06/19/15    0.36719    0.12894    0.23825      

                09/28/15

   09/21/15    0.36719    0.12894    0.23825      

                12/28/15

   12/18/15    0.36719    0.12894    0.23825      
     

 

  

 

  

 

     
      $1.46876    $0.51576    $0.95301      

6.000% Series D Cumulative Preferred Shares

              

                03/26/15

   03/19/15    $0.37500    $0.13168    $0.24332      

                06/26/15

   06/19/15    0.37500    0.13168    0.24332      

                09/28/15

   09/21/15    0.37500    0.13168    0.24332      

                12/28/15

   12/18/15    0.37500    0.13168    0.24332      
     

 

  

 

  

 

     
      $1.50000    $0.52672    $0.97328      

Series B and C Auction Rate Cumulative and Series E Auction Rate Cumulative Preferred Shares

Auction Rate Preferred Shares pay dividends weekly based on the maximum rate. The distributions derived from long term capital gains for the Series B, Series C, or Series E Auction Preferred Shares were $4,283,362 for the fiscal year ended December 31, 2015.

A Form 1099-DIV has been mailed to all shareholders of record for the distributions mentioned above, setting forth specific amounts to be included in the 2015 tax returns. Ordinary income distributions include net investment income and realized net short term capital gains, if any. Ordinary income is reported in box 1a of Form 1099-DIV. Capital gain distributions are reported in box 2a of Form 1099-DIV. The long term gain distributions for the year ended December 31, 2015 were $61,093,756.

Corporate Dividends Received Deduction, Qualified Dividend Income, and U.S. Government Securities Income

In 2015, the Fund paid to common, 5.875% Series A, and 6.00% Series D Cumulative Preferred shareholders ordinary income dividends of $0.33632, $0.51576, and $0.52672 per share, respectively. The Fund paid weekly distributions to Series B, C, and E preferred shareholders at varying rates throughout the year, including ordinary income dividends totaling $135.25, $135.45, and $216.67 per share, respectively. For the year ended December 31, 2015, 100% of the ordinary dividend qualified for the dividends received deduction available to corporations, 100% of the ordinary income distribution was deemed qualified dividend income, and 0.91% of the ordinary income distribution was qualified interest income. The percentage of ordinary income dividends paid by the Fund during 2015 derived from U.S. Treasury securities was 0.08%. Such income is exempt from state and local tax in all states. However, many states, including New York and California, allow a tax exemption for a portion of the income earned only if a fund has invested at least 50% of its assets at the end of each quarter of the Fund’s fiscal year in U.S. Government securities. The Fund did not meet this strict requirement in 2015. The percentage of U.S. Treasury securities held as of December 31, 2015 was 2.14%.

 

27


THE GABELLI DIVIDEND & INCOME TRUST

INCOME TAX INFORMATION (Unaudited) (Continued)

December 31, 2015

 

Historical Distribution Summary

 

         Short Term    Long Term              Adjustment
    Investment    Capital    Capital    Return of    Total    to Cost
   

Income(c)

  

Gains(c)

  

Gains

  

Capital(b)

  

Distributions(a)

  

Basis(d)

Common Shares

                

2015

  $0.30852    $0.02780    $0.62160    $0.28208    $1.24000    $0.28208

2014

  0.38937    0.06471    1.90232    0.0236    2.38000    0.0236

2013

  0.31020    0.00550    0.71430       1.03000   

2012

  0.37632    0.30588       0.27780    0.96000    0.27780

2011

  0.26832    0.13452       0.49716    0.90000    0.49716

2010

  0.16120          0.59880    0.76000    0.59880

2009

  0.20460          0.78540    0.99000    0.78540

2008

  0.27910       0.00250    0.99840    1.28000    0.99840

2007

  0.50910    0.23480    0.91610       1.66000   

2006

  0.60798    0.24082    0.69120       1.54000   

5.875% Series A Cumulative Preferred Shares

                

2015

  $0.47310    $0.04264    $0.95301       $1.46875   

2014

  0.24271    0.04031    1.18573       1.46875   

2013

  0.44235    0.00795    1.01845       1.46875   

2012

  0.81025    0.65850          1.46875   

2011

  0.97821    0.49054          1.46875   

2010

  1.46875             1.46875   

2009

  1.46875             1.46875   

2008

  1.46583       0.00292       1.46875   

2007

  0.45059    0.20776    0.81040       1.46875   

2006

  0.57983    0.22967    0.65925       1.46875   

6.000% Series D Cumulative Preferred Shares

                

2015

  $0.48316    $0.04356    $0.97328       $1.50000   

2014

  0.24788    0.04116    1.21096       1.50000   

2013

  0.45176    0.00812    1.04012       1.50000   

2012

  0.82760    0.67240          1.50000   

2011

  0.99920    0.50080          1.50000   

2010

  1.50000             1.50000   

2009

  1.50000             1.50000   

2008

  1.49700       0.00300       1.50000   

2007

  0.46020    0.21220    0.82760       1.50000   

2006

  0.59215    0.23457    0.67328       1.50000   

 

28


THE GABELLI DIVIDEND & INCOME TRUST

INCOME TAX INFORMATION (Unaudited) (Continued)

December 31, 2015

 

Historical Distribution Summary

 

         Short Term    Long Term              Adjustment
    Investment    Capital    Capital    Return of    Total    to Cost
   

Income(c)

  

Gains(c)

  

Gains

  

Capital(b)

  

Distributions(a)

  

Basis(d)

Auction Market/Rate Cumulative Preferred Shares

           

2015 Class B Shares

  $135.24823    $12.19058    $272.44119       $419.88000   

2015 Class C Shares

  135.44794    12.20858    272.84348       420.50000   

2015 Class E Shares

  216.66839    19.52938    436.45223       672.65000   

2014 Class B Shares

  67.75947    11.25488    331.03565       410.05000   

2014 Class C Shares

  69.08641    11.47528    337.51831       418.08000   

2014 Class E Shares

  109.5438    18.19527    535.17093       662.91000   

2013 Class B Shares

  125.97838    2.26456    290.04706       418.29000   

2013 Class C Shares

  126.00248    2.26499    290.10253       418.37000   

2013 Class E Shares

  206.03966    3.70373    474.37661       684.12000   

2012 Class B Shares

  221.40190    179.93810          401.34000   

2012 Class C Shares

  216.87831    176.26169          393.14000   

2012 Class E Shares

  299.97988    243.80012          543.78000   

2011 Class B Shares

  243.86841    122.29159          366.16000   

2011 Class C Shares

  243.76851    122.24149          366.01000   

2011 Class E Shares

  285.90068    143.36932          429.27000   

2010 Class B Shares

  381.65000             381.65000   

2010 Class C Shares

  381.65000             381.65000   

2010 Class E Shares

  444.84000             444.84000   

2009 Class B Shares

  388.12000             388.12000   

2009 Class C Shares

  388.02000             388.02000   

2009 Class E Shares

  451.10000             451.10000   

2008 Class B Shares

  944.35220       1.87780       946.23000   

2008 Class C Shares

  966.50741       1.92259       968.43000   

2008 Class E Shares

  1044.21367       2.07633       1046.29000   

2007 Class B Shares

  414.02782    190.66719    743.74499       1348.44000   

2007 Class C Shares

  409.97064    188.64406    735.87530       1334.49000   

2007 Class E Shares

  407.63287    187.65002    731.97711       1327.26000   

2006 Class B Shares

  484.90820    192.07260    551.32920       1228.31000   

2006 Class C Shares

  484.32800    191.84250    550.66950       1226.84000   

2006 Class E Shares

  483.94880    191.69260    550.23860       1225.88000   

 

(a) Total amounts may differ due to rounding.

(b) Non-taxable.

(c) Taxable as ordinary income for Federal tax purposes.

(d) Decrease in cost basis.

(e) Represents the spin-off of the Gabelli Global Small and Mid Cap Value Trust (GGZ). On June 23, 2014, the Fund distributed shares of GGZ valued at $12.00 per share. Common shareholders of GDV received one share of GGZ for every ten shares owned of GDV.

 

All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

 

The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading “General Equity Funds,“ in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual Funds/Closed End Funds section under the heading “General Equity Funds.”

The Net Asset Value per share may be obtained each day by calling (914)921-5070 or visiting www.gabelli.com.

The NASDAQ symbol for the Net Asset Value is “XGDVX.”

 

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may from time to time purchase its common shares in the open market when the Fund’s shares are trading at a discount of 7.5% or more from the net asset value of the shares. The Fund may also from time to time purchase its preferred shares in the open market when the preferred shares are trading at a discount to the liquidation value.

 

 

29


THE GABELLI DIVIDEND & INCOME TRUST

ANNUAL APPROVAL OF CONTINUANCE OF INVESTMENT ADVISORY AGREEMENT

During the six months ended December 31, 2015, the Board of Trustees of the Trust approved the continuation of the investment advisory agreement with the Adviser for the Trust on the basis of the recommendation by the trustees (the “Independent Board Members”) who are not “interested persons” of the Trust. The following paragraphs summarize the material information and factors considered by the Independent Board Members as well as their conclusions relative to such factors.

Nature, Extent and Quality of Services. The Independent Board Members considered information regarding the portfolio managers, the depth of the analyst pool available to the Adviser and the portfolio managers, the scope of administrative, shareholder, and other services supervised or provided by the Adviser and the absence of significant service problems reported to the Board. The Independent Board Members noted the experience, length of service, and reputation of the portfolio managers.

Investment Performance. The Independent Board Members reviewed the performance of the Fund over one, three, and five year periods against a peer group of equity closed-end funds prepared by Lipper. The Independent Board Members noted the Fund’s last quartile relative performance for the one year period and second quartile for the three and five year periods.

Profitability. The Independent Board Members reviewed summary data regarding the profitability of the Fund to the Adviser.

Economies of Scale. The Independent Board Members noted that the Fund was a closed-end fund trading at a discount to net asset value and accordingly unlikely to achieve growth of the type that might lead to economies of scale. The Independent Board Members noted that the investment management fee schedule for the Fund does not take into account any potential economies of scale that may develop.

Service and Cost Comparisons. The Independent Board Members compared the expense ratios of the investment management fee, other expenses, and total expenses of the Fund with similar expense ratios of the Lipper peer group of equity closed-end value funds and noted that the Adviser’s management fee includes substantially all administrative services of the Fund as well as investment advisory services. The Independent Board Members noted that the Fund was larger than average within the peer group and that its expense ratios were slightly above average. The Independent Board Members also noted that the management fee structure was the same as that in effect for most of the Gabelli funds. The Independent Board Members were presented with, but did not attach significance to, information comparing the management fee with the fee for other types of accounts managed by an affiliate of the Adviser.

Conclusions. The Independent Board Members concluded that the Fund enjoyed highly experienced portfolio management services, good ancillary services, and a reasonable performance record. The Independent Board Members also concluded that the Fund’s expense ratios and the profitability to the Adviser of managing the Fund were reasonable, and that economies of scale were not a significant factor in their thinking. The Independent Board Members did not view the potential profitability of ancillary services as material to their decision. On the basis of the foregoing and without assigning particular weight to any single conclusion, the Independent Board Members determined to recommend continuation of the Advisory Agreement to the full Board.

Based on a consideration of all these factors in their totality, the Board Members, including all of the Independent Board Members, determined that the Fund’s advisory fee was fair and reasonable with respect to the quality of services provided and in light of the other factors described above that the Board deemed relevant. Accordingly,

 

30


THE GABELLI DIVIDEND & INCOME TRUST

ANNUAL APPROVAL OF CONTINUANCE OF INVESTMENT ADVISORY AGREEMENT (Continued)

the Board Members determined to approve the continuation of the Fund’s Advisory Agreement. The Board Members based their decision on evaluations of all these factors as a whole and did not consider any one factor as all important or controlling.

 

31


AUTOMATIC DIVIDEND REINVESTMENT

AND VOLUNTARY CASH PURCHASE PLANS

Enrollment in the Plan

It is the policy of The Gabelli Dividend & Income Trust to automatically reinvest dividends payable to common shareholders. As a “registered” shareholder, you automatically become a participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes the Fund to credit shares of common stock to participants upon an income dividend or a capital gains distribution regardless of whether the shares are trading at a discount or a premium to net asset value. All distributions to shareholders whose shares are registered in their own names will be automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants may send their stock certificates to Computershare Trust Company, N.A. (“Computershare”) to be held in their dividend reinvestment account. Registered shareholders wishing to receive their distribution in cash must submit this request in writing to:

The Gabelli Dividend & Income Trust

c/o Computershare

P.O. Box 30170

College Station, TX 77842-3170

Shareholders requesting this cash election must include the shareholder’s name and address as they appear on the share certificate. Shareholders with additional questions regarding the Plan or requesting a copy of the terms of the Plan may contact Computershare at (800) 336-6983.

If your shares are held in the name of a broker, bank, or nominee, you should contact such institution. If such institution is not participating in the Plan, your account will be credited with a cash dividend. In order to participate in the Plan through such institution, it may be necessary for you to have your shares taken out of “street name” and re-registered in your own name. Once registered in your own name, your dividends will be automatically reinvested. Certain brokers participate in the Plan. Shareholders holding shares in “street name” at participating institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at such institution must contact their broker to make this change.

The number of shares of common stock distributed to participants in the Plan in lieu of cash dividends is determined in the following manner. Under the Plan, whenever the market price of the Fund’s common stock is equal to or exceeds net asset value at the time shares are valued for purposes of determining the number of shares equivalent to the cash dividends or capital gains distribution, participants are issued shares of common stock valued at the greater of (i) the net asset value as most recently determined or (ii) 95% of the then current market price of the Fund’s common stock. The valuation date is the dividend or distribution payment date or, if that date is not a New York Stock Exchange (“NYSE”) trading day, the next trading day. If the net asset value of the common stock at the time of valuation exceeds the market price of the common stock, participants will receive shares from the Fund valued at market price. If the Fund should declare a dividend or capital gains distribution payable only in cash, Computershare will buy common stock in the open market, or on the NYSE or elsewhere, for the participants’ accounts, except that Computershare will endeavor to terminate purchases in the open market and cause the Fund to issue shares at net asset value if, following the commencement of such purchases, the market value of the common stock exceeds the then current net asset value.

The automatic reinvestment of dividends and capital gains distributions will not relieve participants of any income tax which may be payable on such distributions. A participant in the Plan will be treated for federal income tax purposes as having received, on a dividend payment date, a dividend or distribution in an amount equal to the cash the participant could have received instead of shares.

Voluntary Cash Purchase Plan

The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders must have their shares registered in their own name.

Participants in the Voluntary Cash Purchase Plan have the option of making additional cash payments to Computershare for investments in the Fund’s shares at the then current market price. Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to purchase shares in the open market on or about the 1st and 15th of each month. Computershare will charge each shareholder who participates $0.75, plus a pro rata share of the brokerage commissions. Brokerage charges for such purchases are expected to be less than the usual brokerage charge for such transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O. Box 43010, Providence, RI 02940–3010 such that Computershare receives such payments approximately 10 days before the 1st and 15th of the month. Funds not received at least five days before the investment date shall be held for investment until the next purchase date. A payment may be withdrawn without charge if notice is received by Computershare at least 48 hours before such payment is to be invested.

Shareholders wishing to liquidate shares held at Computershare must do so in writing or by telephone. Please submit your request to the above mentioned address or telephone number. Include in your request your name, address, and account number. The cost to liquidate shares is $2.50 per transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less than the usual brokerage charge for such transactions.

For more information regarding the Dividend Reinvestment Plan and Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the Fund.

The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to written notice of the change sent to the members of the Plan at least 90 days before the record date for such dividend or distribution. The Plan also may be amended or terminated by Computershare on at least 90 days written notice to participants in the Plan.

 

32


 

 

 

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THE GABELLI DIVIDEND & INCOME TRUST

One Corporate Center

Rye, NY 10580-1422

Portfolio Management Team Biographies

Mario J. Gabelli, CFA, is Chairman, Chief Executive Officer, and Chief Investment Officer - Value Portfolios of GAMCO Investors, Inc. that he founded in 1977, and Chief Investment Officer - Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. He is also Chief Executive Officer and Chairman of the Board of Directors of Associated Capital Group, Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA with honors from Columbia Business School.

Barbara G. Marcin, CFA, joined GAMCO Investors, Inc. in 1999 and currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Prior to joining GAMCO, Ms. Marcin was head of value investments at Citibank Global Asset Management. Ms. Marcin graduated with Distinction as an Echols Scholar from the University of Virginia and holds an MBA degree from Harvard University’s Graduate School of Business.

Robert D. Leininger, CFA, joined GAMCO Investors, Inc. in 1993 as an equity analyst. Subsequently, he was a partner and portfolio manager at Rorer Asset Management before rejoining GAMCO in 2010 where he currently serves as a portfolio manager of Gabelli Funds, LLC and co-manages the Fund. Mr. Leininger is a magna cum laude graduate of Amherst College with a degree in Economics and holds an MBA from the Wharton School at the University of Pennsylvania.

Jeffrey J. Jonas, CFA, joined Gabelli in 2003 as a research analyst. He focuses on companies in the cardiovascular, healthcare services, and pharmacy benefits management sectors, among others. He also serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Jonas was a Presidential Scholar at Boston College, where he received a BS in Finance and Management Information Systems.

Kevin V. Dreyer joined Gabelli in 2005 as a research analyst covering companies within the consumer sector. He currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Dreyer received a BSE from the University of Pennsylvania and an MBA from Columbia Business School.


THE GABELLI DIVIDEND & INCOME TRUST

One Corporate Center

Rye, NY 10580-1422

 

t

800-GABELLI (800-422-3554)

 

f

914-921-5118

 

e

info@gabelli.com

 

  

GABELLI.COM

 

 

 

TRUSTEES   OFFICERS

 

Mario J. Gabelli, CFA

Chairman and

Chief Executive Officer,

GAMCO Investors, Inc.

Chairman and

Chief Executive Officer,

Associated Capital Group, Inc.

 

Anthony J. Colavita

President,

Anthony J. Colavita, P.C.

 

James P. Conn

Former Managing Director &

Chief Investment Officer,

Financial Security Assurance

Holdings Ltd.

 

Frank J. Fahrenkopf, Jr.

Former President &

Chief Executive Officer,

American Gaming Association

 

Michael J. Melarkey

Of Counsel,

McDonald Carano Wilson LLP

 

Salvatore M. Salibello, CPA

Senior Partner,

Bright Side Consulting

 

Edward T. Tokar

Senior Managing Director,

Beacon Trust Company

 

Anthonie C. van Ekris

Chairman,

BALMAC International, Inc.

 

Salvatore J. Zizza

Chairman,

Zizza & Associates Corp.

 

 

Bruce N. Alpert

President

 

Andrea R. Mango

Secretary &

Vice President

 

Agnes Mullady

Treasurer

 

Richard J. Walz

Chief Compliance Officer

 

Carter W. Austin

Vice President & Ombudsman

 

Laurissa M. Martire

Vice President & Ombudsman

 

David I. Schachter

Vice President

 

INVESTMENT ADVISER

 

Gabelli Funds, LLC

One Corporate Center

Rye, New York 10580-1422

 

CUSTODIAN

 

State Street Bank and Trust

Company

 

COUNSEL

 

Skadden, Arps, Slate, Meagher &

Flom LLP

 

TRANSFER AGENT AND

REGISTRAR

 

Computershare Trust Company, N.A.

 

 

 

GDV Q4/2015

LOGO

 


Item 2. Code of Ethics.

 

  (a)

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

  (c)

There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

 

  (d)

The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

As of the end of the period covered by the report, the registrant’s Board of Trustees has determined that Salvatore M. Salibello is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

 

  (a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $46,424 for 2014 and $47,817 for 2015.

Audit-Related Fees

 

  (b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $12,000 for 2014 and $0 for 2015.


Tax Fees

 

  (c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $4,500 for 2014 and $4,635 for 2015. Tax fees represent tax compliance services provided in connection with the review of the Registrant’s tax returns.

All Other Fees

 

  (d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2014 and $0 for 2015. All other fees represent services provided in review of registration statement.

 

  (e)(1)

Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent registered public accounting firm to the registrant and (ii) all permissible non-audit services to be provided by the independent registered public accounting firm to the Adviser, Gabelli Funds, LLC, and any affiliate of Gabelli Funds, LLC (“Gabelli”) that provides services to the registrant (a “Covered Services Provider”) if the independent registered public accounting firm’s engagement related directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson must report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to the other persons (other than Gabelli or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (ii) such services are promptly brought to the attention of the Committee and approved by the Committee or Chairperson prior to the completion of the audit.

 

  (e)(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) N/A

(c) 100%

(d) 100%

 

  (f)

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.


  (g)

The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2014 and $0 for 2015.

 

  (h)

The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed registrants.

The registrant has a separately designated audit committee consisting of the following members: Anthony J. Colavita, Frank J. Fahrenkopf, Jr., Salvatore M. Salibello, and Salvatore J. Zizza.

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b) Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The Proxy Voting Policies are attached herewith.


SECTION HH

The Voting of Proxies on Behalf of Clients

Rules 204(4)-2 and 204-2 under the Investment Advisers Act of 1940 and Rule 30b1-4 under the Investment Company Act of 1940 require investment advisers to adopt written policies and procedures governing the voting of proxies on behalf of their clients.

These procedures will be used by GAMCO Asset Management Inc., Gabelli Funds, LLC, Gabelli Securities, Inc., and Teton Advisors, Inc. (collectively, the “Advisers”) to determine how to vote proxies relating to portfolio securities held by their clients, including the procedures that the Advisers use when a vote presents a conflict between the interests of the shareholders of an investment company managed by one of the Advisers, on the one hand, and those of the Advisers; the principal underwriter; or any affiliated person of the investment company, the Advisers, or the principal underwriter. These procedures will not apply where the Advisers do not have voting discretion or where the Advisers have agreed to with a client to vote the client’s proxies in accordance with specific guidelines or procedures supplied by the client (to the extent permitted by ERISA).

 

  I.

Proxy Voting Committee

The Proxy Voting Committee was originally formed in April 1989 for the purpose of formulating guidelines and reviewing proxy statements within the parameters set by the substantive proxy voting guidelines originally published in 1988 and updated periodically, a copy of which are appended as Exhibit A. The Committee will include representatives of Research, Administration, Legal, and the Advisers. Additional or replacement members of the Committee will be nominated by the Chairman and voted upon by the entire Committee.

 Meetings are held on an as needed basis to form views on the manner in which the Advisers should vote proxies on behalf of their clients.

In general, the Director of Proxy Voting Services, using the Proxy Guidelines, recommendations of Institutional Shareholder Services Inc. (“ISS”), other third-party services and the analysts of G.research, Inc., will determine how to vote on each issue. For non-controversial matters, the Director of Proxy Voting Services may vote the proxy if the vote is: (1) consistent with the recommendations of the issuer’s Board of Directors and not contrary to the Proxy Guidelines; (2) consistent with the recommendations of the issuer’s Board of Directors and is a non-controversial issue not covered by the Proxy Guidelines; or (3) the vote is contrary to the recommendations of the Board of Directors but is consistent with the Proxy Guidelines. In those instances, the Director of Proxy Voting Services or the Chairman of the Committee may sign and date the proxy statement indicating how each issue will be voted.

 

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All matters identified by the Chairman of the Committee, the Director of Proxy Voting Services or the Legal Department as controversial, taking into account the recommendations of ISS or other third party services and the analysts of G.research, Inc., will be presented to the Proxy Voting Committee. If the Chairman of the Committee, the Director of Proxy Voting Services or the Legal Department has identified the matter as one that (1) is controversial; (2) would benefit from deliberation by the Proxy Voting Committee; or (3) may give rise to a conflict of interest between the Advisers and their clients, the Chairman of the Committee will initially determine what vote to recommend that the Advisers should cast and the matter will go before the Committee.

 

  A.

Conflicts of Interest.

The Advisers have implemented these proxy voting procedures in order to prevent conflicts of interest from influencing their proxy voting decisions. By following the Proxy Guidelines, as well as the recommendations of ISS, other third-party services and the analysts of G.research, the Advisers are able to avoid, wherever possible, the influence of potential conflicts of interest. Nevertheless, circumstances may arise in which one or more of the Advisers are faced with a conflict of interest or the appearance of a conflict of interest in connection with its vote. In general, a conflict of interest may arise when an Adviser knowingly does business with an issuer, and may appear to have a material conflict between its own interests and the interests of the shareholders of an investment company managed by one of the Advisers regarding how the proxy is to be voted. A conflict also may exist when an Adviser has actual knowledge of a material business arrangement between an issuer and an affiliate of the Adviser.

In practical terms, a conflict of interest may arise, for example, when a proxy is voted for a company that is a client of one of the Advisers, such as GAMCO Asset Management Inc. A conflict also may arise when a client of one of the Advisers has made a shareholder proposal in a proxy to be voted upon by one or more of the Advisers. The Director of Proxy Voting Services, together with the Legal Department, will scrutinize all proxies for these or other situations that may give rise to a conflict of interest with respect to the voting of proxies.

 

  B.

Operation of Proxy Voting Committee

For matters submitted to the Committee, each member of the Committee will receive, prior to the meeting, a copy of the proxy statement, any relevant third party research, a summary of any views provided by the Chief Investment Officer and any recommendations by G.research, Inc. analysts. The Chief Investment Officer or the G.research, Inc. analysts may be invited to present their viewpoints. If the Director of Proxy Voting Services or the Legal Department believe that the matter before the

 

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committee is one with respect to which a conflict of interest may exist between the Advisers and their clients, counsel will provide an opinion to the Committee concerning the conflict. If the matter is one in which the interests of the clients of one or more of the Advisers may diverge, counsel will so advise and the Committee may make different recommendations as to different clients. For any matters where the recommendation may trigger appraisal rights, counsel will provide an opinion concerning the likely risks and merits of such an appraisal action.

Each matter submitted to the Committee will be determined by the vote of a majority of the members present at the meeting. Should the vote concerning one or more recommendations be tied in a vote of the Committee, the Chairman of the Committee will cast the deciding vote. The Committee will notify the proxy department of its decisions and the proxies will be voted accordingly.

Although the Proxy Guidelines express the normal preferences for the voting of any shares not covered by a contrary investment guideline provided by the client, the Committee is not bound by the preferences set forth in the Proxy Guidelines and will review each matter on its own merits. The Advisers subscribe to ISS, which supplies current information on companies, matters being voted on, regulations, trends in proxy voting and information on corporate governance issues.

If the vote cast either by the analyst or as a result of the deliberations of the Proxy Voting Committee runs contrary to the recommendation of the Board of Directors of the issuer, the matter will be referred to legal counsel to determine whether an amendment to the most recently filed Schedule 13D is appropriate.

 

  II.

Social Issues and Other Client Guidelines

If a client has provided special instructions relating to the voting of proxies, they should be noted in the client’s account file and forwarded to the proxy department. This is the responsibility of the investment professional or sales assistant for the client. In accordance with Department of Labor guidelines, the Advisers’ policy is to vote on behalf of ERISA accounts in the best interest of the plan participants with regard to social issues that carry an economic impact. Where an account is not governed by ERISA, the Advisers will vote shares held on behalf of the client in a manner consistent with any individual investment/voting guidelines provided by the client. Otherwise the Advisers will abstain with respect to those shares.

 

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  III.

Client Retention of Voting Rights

If a client chooses to retain the right to vote proxies or if there is any change in voting authority, the following should be notified by the investment professional or sales assistant for the client.

- Operations

- Proxy Department

- Investment professional assigned to the account

In the event that the Board of Directors (or a Committee thereof) of one or more of the investment companies managed by one of the Advisers has retained direct voting control over any security, the Proxy Voting Department will provide each Board Member (or Committee member) with a copy of the proxy statement together with any other relevant information including recommendations of ISS or other third-party services.

 

  IV.

Proxies of Certain Non-U.S. Issuers

Proxy voting in certain countries requires “share-blocking.” Shareholders wishing to vote their proxies must deposit their shares shortly before the date of the meeting with a designated depository. During the period in which the shares are held with a depository, shares that will be voted at the meeting cannot be sold until the meeting has taken place and the shares are returned to the clients’ custodian. Absent a compelling reason to the contrary, the Advisers believe that the benefit to the client of exercising the vote is outweighed by the cost of voting and therefore, the Advisers will not typically vote the securities of non-U.S. issuers that require share-blocking.

In addition, voting proxies of issuers in non-US markets may also give rise to a number of administrative issues to prevent the Advisers from voting such proxies. For example, the Advisers may receive the notices for shareholder meetings without adequate time to consider the proposals in the proxy or after the cut-off date for voting. Other markets require the Advisers to provide local agents with power of attorney prior to implementing their respective voting instructions on the proxy. Although it is the Advisers’ policies to vote the proxies for its clients for which they have proxy voting authority, in the case of issuers in non-US markets, we vote client proxies on a best efforts basis.

 

  V.

Voting Records

The Proxy Voting Department will retain a record of matters voted upon by the Advisers for their clients. The Advisers will supply information on how they voted a client’s proxy upon request from the client.

The complete voting records for each registered investment company (the “Fund”) that is managed by the Advisers will be filed on Form N-PX for the twelve months ended June 30th, no later than August 31st of each year. A description of the Fund’s proxy voting policies, procedures, and how the Fund voted proxies relating to portfolio securities is available without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to Gabelli Funds, LLC at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at www.sec.gov .

 

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The Advisers’ proxy voting records will be retained in compliance with Rule 204-2 under the Investment Advisers Act.

 

  VI.

Voting Procedures

1.  Custodian banks, outside brokerage firms and clearing firms are responsible for forwarding proxies directly to the Advisers.

Proxies are received in one of two forms:

 

   

Shareholder Vote Instruction Forms (“VIFs”) - Issued by Broadridge Financial Solutions, Inc. (“Broadridge”). Broadridge is an outside service contracted by the various institutions to issue proxy materials.

   

Proxy cards which may be voted directly.

2.  Upon receipt of the proxy, the number of shares each form represents is logged into the proxy system, electronically or manually, according to security.

3.  Upon receipt of instructions from the proxy committee, the votes are cast and recorded for each account.

Records have been maintained on the ProxyEdge system.

ProxyEdge records include:

Security Name and Cusip Number

Date and Type of Meeting (Annual, Special, Contest)

Client Name

Adviser or Fund Account Number

Directors’ Recommendation

How the Adviser voted for the client on item

4.  VIFs are kept alphabetically by security. Records for the current proxy season are located in the Proxy Voting Department office. In preparation for the upcoming season, files are transferred to an offsite storage facility during January/February.

5.  If a proxy card or VIF is received too late to be voted in the conventional matter, every attempt is made to vote including:

 

   

When a solicitor has been retained, the solicitor is called. At the solicitor’s direction, the proxy is faxed or sent electronically.

 

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In some circumstances VIFs can be faxed or sent electronically to Broadridge up until the time of the meeting.

6.  In the case of a proxy contest, records are maintained for each opposing entity.

7.  Voting in Person

a) At times it may be necessary to vote the shares in person. In this case, a “legal proxy” is obtained in the following manner:

 

 

Banks and brokerage firms using the services at Broadridge:

Broadridge is notified that we wish to vote in person. Broadridge issues individual legal proxies and sends them back via email or overnight (or the Adviser can pay messenger charges). A lead-time of at least two weeks prior to the meeting is needed to do this. Alternatively, the procedures detailed below for banks not using Broadridge may be implemented.

 

 

Banks and brokerage firms issuing proxies directly:

The bank is called and/or faxed and a legal proxy is requested.

All legal proxies should appoint:

“Representative of [Adviser name] with full power of substitution.”

b)  The legal proxies are given to the person attending the meeting along with the limited power of attorney.

 

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Appendix A

Proxy Guidelines

PROXY VOTING GUIDELINES

General Policy Statement

It is the policy of GAMCO Investors, Inc, and its affiliated advisers (collectively “the Advisers”) to vote in the best economic interests of our clients. As we state in our Magna Carta of Shareholders Rights, established in May 1988, we are neither for nor against management. We are for shareholders.

At our first proxy committee meeting in 1989, it was decided that each proxy statement should be evaluated on its own merits within the framework first established by our Magna Carta of Shareholders Rights. The attached guidelines serve to enhance that broad framework.

We do not consider any issue routine. We take into consideration all of our research on the company, its directors, and their short and long-term goals for the company. In cases where issues that we generally do not approve of are combined with other issues, the negative aspects of the issues will be factored into the evaluation of the overall proposals but will not necessitate a vote in opposition to the overall proposals.

Board of Directors

We do not consider the election of the Board of Directors a routine issue. Each slate of directors is evaluated on a case-by-case basis.

Factors taken into consideration include:

 

 

Historical responsiveness to shareholders

This may include such areas as:

-Paying greenmail

-Failure to adopt shareholder resolutions receiving a majority of shareholder votes

 

Qualifications

 

Nominating committee in place

 

Number of outside directors on the board

 

Attendance at meetings

 

Overall performance

 

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Selection of Auditors

In general, we support the Board of Directors’ recommendation for auditors.

Blank Check Preferred Stock

We oppose the issuance of blank check preferred stock.

Blank check preferred stock allows the company to issue stock and establish dividends, voting rights, etc. without further shareholder approval.

Classified Board

A classified board is one where the directors are divided into classes with overlapping terms. A different class is elected at each annual meeting.

While a classified board promotes continuity of directors facilitating long range planning, we feel directors should be accountable to shareholders on an annual basis. We will look at this proposal on a case-by-case basis taking into consideration the board’s historical responsiveness to the rights of shareholders.

Where a classified board is in place we will generally not support attempts to change to an annually elected board.

When an annually elected board is in place, we generally will not support attempts to classify the board.

Increase Authorized Common Stock

The request to increase the amount of outstanding shares is considered on a case-by-case basis.

Factors taken into consideration include:

 

 

Future use of additional shares

-Stock split

-Stock option or other executive compensation plan

-Finance growth of company/strengthen balance sheet

-Aid in restructuring

-Improve credit rating

-Implement a poison pill or other takeover defense

 

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Amount of stock currently authorized but not yet issued or reserved for stock option plans

 

Amount of additional stock to be authorized and its dilutive effect

We will support this proposal if a detailed and verifiable plan for the use of the additional shares is contained in the proxy statement.

Confidential Ballot

We support the idea that a shareholder’s identity and vote should be treated with confidentiality.

However, we look at this issue on a case-by-case basis.

In order to promote confidentiality in the voting process, we endorse the use of independent Inspectors of Election.

Cumulative Voting

In general, we support cumulative voting.

Cumulative voting is a process by which a shareholder may multiply the number of directors being elected by the number of shares held on record date and cast the total number for one candidate or allocate the voting among two or more candidates.

Where cumulative voting is in place, we will vote against any proposal to rescind this shareholder right.

Cumulative voting may result in a minority block of stock gaining representation on the board. When a proposal is made to institute cumulative voting, the proposal will be reviewed on a case-by-case basis. While we feel that each board member should represent all shareholders, cumulative voting provides minority shareholders an opportunity to have their views represented.

Director Liability and Indemnification

We support efforts to attract the best possible directors by limiting the liability and increasing the indemnification of directors, except in the case of insider dealing.

 

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Equal Access to the Proxy

The SEC’s rules provide for shareholder resolutions. However, the resolutions are limited in scope and there is a 500 word limit on proponents’ written arguments. Management has no such limitations. While we support equal access to the proxy, we would look at such variables as length of time required to respond, percentage of ownership, etc.

Fair Price Provisions

Charter provisions requiring a bidder to pay all shareholders a fair price are intended to prevent two-tier tender offers that may be abusive. Typically, these provisions do not apply to board-approved transactions.

We support fair price provisions because we feel all shareholders should be entitled to receive the same benefits.

Reviewed on a case-by-case basis.

Golden Parachutes

Golden parachutes are severance payments to top executives who are terminated or demoted after a takeover.

We support any proposal that would assure management of its own welfare so that they may continue to make decisions in the best interest of the company and shareholders even if the decision results in them losing their job. We do not, however, support excessive golden parachutes. Therefore, each proposal will be decided on a case-by- case basis.

Anti-Greenmail Proposals

We do not support greenmail. An offer extended to one shareholder should be extended to all shareholders equally across the board.

 

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Limit Shareholders’ Rights to Call Special Meetings

We support the right of shareholders to call a special meeting.

Consideration of Nonfinancial Effects of a Merger

This proposal releases the directors from only looking at the financial effects of a merger and allows them the opportunity to consider the merger’s effects on employees, the community, and consumers.

As a fiduciary, we are obligated to vote in the best economic interests of our clients. In general, this proposal does not allow us to do that. Therefore, we generally cannot support this proposal.

Reviewed on a case-by-case basis.

Mergers, Buyouts, Spin-Offs, Restructurings

Each of the above is considered on a case-by-case basis. According to the Department of Labor, we are not required to vote for a proposal simply because the offering price is at a premium to the current market price. We may take into consideration the long term interests of the shareholders.

Military Issues

Shareholder proposals regarding military production must be evaluated on a purely economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case basis.

In voting on this proposal for our non-ERISA clients, we will vote according to the client’s direction when applicable. Where no direction has been given, we will vote in the best economic interests of our clients. It is not our duty to impose our social judgment on others.

Northern Ireland

Shareholder proposals requesting the signing of the MacBride principles for the purpose of countering the discrimination of Catholics in hiring practices must be evaluated on a purely economic set of criteria for our ERISA clients. As such, decisions will be made on a case-by-case basis.


In voting on this proposal for our non-ERISA clients, we will vote according to client direction when applicable. Where no direction has been given, we will vote in the best economic interests of our clients. It is not our duty to impose our social judgment on others.

Opt Out of State Anti-Takeover Law

This shareholder proposal requests that a company opt out of the coverage of the state’s takeover statutes. Example: Delaware law requires that a buyer must acquire at least 85% of the company’s stock before the buyer can exercise control unless the board approves.

We consider this on a case-by-case basis. Our decision will be based on the following:

 

 

State of Incorporation

 

Management history of responsiveness to shareholders

 

Other mitigating factors

 

Poison Pill

In general, we do not endorse poison pills.

In certain cases where management has a history of being responsive to the needs of shareholders and the stock is very liquid, we will reconsider this position.

Reincorporation

Generally, we support reincorporation for well-defined business reasons. We oppose reincorporation if proposed solely for the purpose of reincorporating in a state with more stringent anti-takeover statutes that may negatively impact the value of the stock.

Stock Incentive Plans

Director and Employee Stock incentive plans are an excellent way to attract, hold and motivate directors and employees. However, each incentive plan must be evaluated on its own merits, taking into consideration the following:

 

 

Dilution of voting power or earnings per share by more than 10%.

 

Kind of stock to be awarded, to whom, when and how much.

 

Method of payment.


 

Amount of stock already authorized but not yet issued under existing stock plans.

 

The successful steps taken by management to maximize shareholder value.

Supermajority Vote Requirements

Supermajority vote requirements in a company’s charter or bylaws require a level of voting approval in excess of a simple majority of the outstanding shares. In general, we oppose supermajority-voting requirements. Supermajority requirements often exceed the average level of shareholder participation. We support proposals’ approvals by a simple majority of the shares voting.

Limit Shareholders Right to Act by Written Consent

Written consent allows shareholders to initiate and carry on a shareholder action without having to wait until the next annual meeting or to call a special meeting. It permits action to be taken by the written consent of the same percentage of the shares that would be required to effect proposed action at a shareholder meeting.

Reviewed on a case-by-case basis.

“Say-on-Pay” / “Say-When-on-Pay” / “Say-on-Golden-Parachutes”

Required under the Dodd-Frank Act; these proposals are non-binding advisory votes on executive compensation. We will generally vote with the Board of Directors’ recommendation(s) on advisory votes on executive compensation (“Say-on-Pay”), advisory votes on the frequency of voting on executive compensation (“Say-When-on-Pay”) and advisory votes relating to extraordinary transaction executive compensation (“Say-on-Golden-Parachutes”). In those instances when we believe that it is in our clients’ best interest, we may abstain or vote against executive compensation and/or the frequency of votes on executive compensation and/or extraordinary transaction executive compensation advisory votes.


Item 8. Portfolio Managers of Closed-End Management Investment Companies.

PORTFOLIO MANAGERS

Mr. Mario J. Gabelli, CFA, Ms. Barbara G. Marcin, CFA, Mr. Robert D. Leininger, CFA, Mr. Kevin V. Dreyer, Mr. Jeffrey J. Jonas, CFA and Mr. Christopher J. Marangi, serve as Portfolio Managers of the Gabelli Dividend & Income Trust.

PORTFOLIO MANAGEMENT

Mario J. Gabelli, CFA, is Chairman and Chief Executive Officer of GAMCO Investors, Inc. and Associated Capital Group, Inc., and Chief Investment Officer – Value Portfolios of Gabelli Funds, LLC and GAMCO Asset Management Inc. Mr. Gabelli is a summa cum laude graduate of Fordham University and holds an MBA degree from Columbia Business School and Honorary Doctorates from Fordham University and Roger Williams University.

Barbara Marcin, CFA, joined GAMCO Investors, Inc. in 1999 and currently serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Prior to joining GAMCO, Ms. Marcin was head of value investments at Citibank Global Asset Management. Ms. Marcin graduated with distinction as an Echols Scholar from the University of Virginia and holds an MBA degree from Harvard University’s Graduate School of Business.

Robert Leininger, CFA, joined GAMCO Investors, Inc. in 1993 as an equity analyst. Subsequently, he was a partner and portfolio manager at Rorer Asset Management before rejoining GAMCO in 2010 where he currently serves as a portfolio manager of Gabelli Funds, LLC and co-manages the Fund. Mr. Leininger is a magna cum laude graduate of Amherst College with a degree in economics and holds an MBA from the Wharton School at the University of Pennsylvania.

Kevin V. Dreyer joined Gabelli in 2005 as a research analyst covering companies within the consumer sector. He currently serves as Co-Chief Investment Officer of GAMCO Investors, Inc.’s Value team and a portfolio manager of Gabelli Funds, LLC. He manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Dreyer received a BSE from the University of Pennsylvania and an MBA from Columbia Business School.

Jeffrey J. Jonas, CFA, joined Gabelli in 2003 as a research analyst. He has focused on companies in the cardiovascular, healthcare services, and pharmacy benefits management sectors, among others. He serves as a portfolio manager of Gabelli Funds, LLC and manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Jonas was a Presidential Scholar at Boston College, where he received a BS in Finance and Management Information Systems.

Christopher J. Marangi joined Gabelli in 2003 as a research analyst. He currently serves as Co-Chief Investment Officer of GAMCO Investors, Inc.’s Value team and a portfolio manager of Gabelli Funds, LLC. He manages several funds within the Gabelli/GAMCO Fund Complex. Mr. Marangi graduated magna cum laude and Phi Beta Kappa with a BA in Political Economy from Williams College and holds an MBA with honors from Columbia Business School.


MANAGEMENT OF OTHER ACCOUNTS

The table below shows the number of other accounts managed by the Portfolio Managers and the total assets in each of the following categories: registered investment companies, other paid investment vehicles and other accounts as of December 31, 2015. For each category, the table also shows the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on account performance.

 

Name of Portfolio

Manager

 

  

Type of

Accounts

 

  

Total

No. of

Accounts

Managed

 

  

Total  Assets

 

  

No. of

Accounts

where

Advisory Fee

is Based on

Performance

 

  

Total Assets

in Accounts where

Advisory Fee

is Based on

Performance

 

1. Mario J. Gabelli

  

Registered Investment Companies:

 

   24    19.2B    5    2.2B
    

Other Pooled Investment
Vehicles:

 

   29    900.5M    18    795.6M
    

Other Accounts:  

 

   1,634    15.1B    20    1.7B
                          

2. Barbara G. Marcin

  

Registered Investment Companies:

 

   3    725.9M    0    0
    

Other Pooled Investment
Vehicles:

 

   0    0    0    0
    

Other Accounts:

 

   31    92.1M    0    0
                          

3. Robert D. Leininger

  

Registered Investment Companies:

 

   1    58.0M    0    0
    

Other Pooled Investment
Vehicles:

 

   0    0    0    0
    

Other Accounts:

 

   79    289.7M    2    42.2M
                          

4. Kevin V. Dreyer

   Registered Investment Companies:    6    3.3B    1    151.7M
     Other Pooled Investment
Vehicles:
   0    0    0    0
     Other Accounts:    345    1.1B    1    11.5M
                          

5. Jeffrey J. Jonas

   Registered Investment Companies:    3    3.1B    0    0
     Other Pooled Investment
Vehicles:
   0    0    0    0
     Other Accounts:    66    111.4M    2    23.9M
                          

6. Christopher J. Marangi

   Registered Investment Companies:    6    3.7B    2    343.3M
     Other Pooled Investment
Vehicles:
   0    0    0    0
     Other Accounts:    350    1.2B    2    18.3M


POTENTIAL CONFLICTS OF INTEREST

As reflected above, the Portfolio Managers manage accounts in addition to the Trust. Actual or apparent conflicts of interest may arise when a Portfolio Manager also has day to day management responsibilities with respect to one or more other accounts. These potential conflicts include:

ALLOCATION OF LIMITED TIME AND ATTENTION. As indicated above, the Portfolio Managers manage multiple accounts. As a result, he/she will not be able to devote all of their time to the management of the Trust. The Portfolio Managers, therefore, may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts as might be the case if he/she were to devote all of their attention to the management of only the Trust.

ALLOCATION OF LIMITED INVESTMENT OPPORTUNITIES. As indicated above, the Portfolio Managers manage managed accounts with investment strategies and/or policies that are similar to the Trust. In these cases, if the Portfolio Manager identifies an investment opportunity that may be suitable for multiple accounts, a fund may not be able to take full advantage of that opportunity because the opportunity may be allocated among all or many of these accounts or other accounts managed primarily by other Portfolio Managers of the Adviser, and their affiliates. In addition, in the event a Portfolio Manager determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions.

SELECTION OF BROKER/DEALERS.  Because of Mr. Gabelli’s indirect majority ownership interest in G.research, LLC, he may have an incentive to use G.research to execute portfolio transactions for a fund.

PURSUIT OF DIFFERING STRATEGIES.  At times, the Portfolio Managers may determine that an investment opportunity may be appropriate for only some of the accounts for which he/she exercises investment responsibility, or may decide that certain of the funds or accounts should take differing positions with respect to a particular security. In these cases, the Portfolio Manager may execute differing or opposite transactions for one or more accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment of one or more other accounts.

VARIATION IN COMPENSATION. A conflict of interest may arise where the financial or other benefits available to the Portfolio Manager differs among the accounts that they manage. If the structure of the Adviser’s management fee or the Portfolio Manager’s compensation differs among accounts (such as where certain accounts pay higher management fees or performance-based management fees), the portfolio managers may be motivated to favor certain accounts over others. The portfolio managers also may be motivated to favor accounts in which they have an investment interest, or in which the Adviser, or their affiliates have investment interests. Similarly, the desire to maintain assets under management or to enhance a Portfolio Manager’s performance record or to derive other rewards, financial or otherwise, could influence the Portfolio Manager in affording preferential treatment to those accounts


that could most significantly benefit the Portfolio Manager. For example, as reflected above, if the Portfolio Manager manages accounts which have performance fee arrangements, certain portions of his/her compensation will depend on the achievement of performance milestones on those accounts. The Portfolio Manager could be incented to afford preferential treatment to those accounts and thereby be subject to a potential conflict of interest.

The Adviser and the Funds have adopted compliance policies and procedures that are designed to address the various conflicts of interest that may arise for the Adviser and their staff members. However, there is no guarantee that such policies and procedures will be able to detect and prevent every situation in which an actual or potential conflict may arise.

COMPENSATION STRUCTURE FOR MARIO J. GABELLI

Mr. Gabelli receives incentive-based variable compensation based on a percentage of net revenues received by the Adviser for managing the Trust. Net revenues are determined by deducting from gross investment management fees the firm’s expenses (other than Mr. Gabelli’s compensation) allocable to this Trust. Five closed-end registered investment companies (including this Trust) managed by Mr. Gabelli have arrangements whereby the Adviser will only receive its investment advisory fee attributable to the liquidation value of outstanding preferred stock (and Mr. Gabelli would only receive his percentage of such advisory fee) if certain performance levels are met. Additionally, he receives similar incentive based variable compensation for managing other accounts within the firm and its affiliates. This method of compensation is based on the premise that superior long-term performance in managing a portfolio should be rewarded with higher compensation as a result of growth of assets through appreciation and net investment activity. The level of compensation is not determined with specific reference to the performance of any account against any specific benchmark. One of the other closed-end registered investment companies managed by Mr. Gabelli has a performance (fulcrum) fee arrangement for which his compensation is adjusted up or down based on the performance of the investment company relative to an index. Mr. Gabelli manages other accounts with performance fees. Compensation for managing these accounts has two components. One component is based on a percentage of net revenues to the investment adviser for managing the account. The second component is based on absolute performance of the account, with respect to which a percentage of such performance fee is paid to Mr. Gabelli. As an executive officer of the Adviser’s parent company, GBL, Mr. Gabelli also receives ten percent of the net operating profits of the parent company. He receives no base salary, no annual bonus, and no stock options.

COMPENSATION STRUCTURE FOR THE PORTFOLIO MANAGERS OTHER THAN MR. GABELLI

The compensation for the Portfolio Managers other than Mr. Gabelli for the Trust is structured to enable the Adviser to attract and retain highly qualified professionals in a competitive environment. The Portfolio Managers other than Mr. Gabelli receive a compensation package that includes a minimum draw or base salary, equity-based incentive compensation via awards of restricted stock, and incentive based variable compensation based on a percentage of net revenue received by the Adviser for managing the Trust to the extent that the amount exceeds a minimum level of compensation. Net revenues are determined by deducting from gross investment management fees certain of the firm’s expenses (other than the Portfolio Managers’ compensation) allocable to the Trust (the incentive-based variable compensation for managing other accounts is also based on a percentage of net revenues to the investment adviser for managing the account). This method of compensation is based on the premise that superior long-term performance in managing a portfolio should be rewarded with higher


compensation as a result of growth of assets through appreciation and net investment activity. The level of equity-based incentive and incentive-based variable compensation is based on an evaluation by the Adviser’s parent, GBL, of quantitative and qualitative performance evaluation criteria. This evaluation takes into account, in a broad sense, the performance of the accounts managed by the Portfolio Managers, but the level of compensation is not determined with specific reference to the performance of any account against any specific benchmark. Generally, greater consideration is given to the performance of larger accounts and to longer term performance over smaller accounts and short-term performance.

OWNERSHIP OF SHARES IN THE FUND

Mario J. Gabelli, Barbara G. Marcin, Robert D Leininger, Kevin V. Dreyer, Jeffrey J. Jonas, and Christopher J. Marangi each owned over $1,000,000, $0, $100,001 - $500,000, $10,001 - $50,000, $50,001 - $100,000, and $0 - $10,000, respectively, of shares of the Trust as of December 31, 2015.

(b)       Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

REGISTRANT PURCHASES OF EQUITY SECURITIES

 

Period

 

 

(a) Total Number

of Shares (or

Units) Purchased

 

 

(b) Average

Price Paid per

Share (or Unit)

 

 

(c) Total Number of Shares 
(or Units) Purchased as Part 
of Publicly Announced Plans 
or Programs 

 

 

(d) Maximum Number (or
Approximate Dollar Value) of Shares
(or Units) that May Yet Be Purchased
Under the Plans or Programs

 

Month #1  

07/01/15
through
07/31/15

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – 82,774,478

 

Preferred Series A – 3,048,019

 

Preferred Series D – 2,542,296

Month #2  

08/01/15
through
08/31/15

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – 82,774,478

 

Preferred Series A – 3,048,019

 

Preferred Series D – 2,542,296

Month #3  

09/01/15
through
09/30/15

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – 82,774,478

 

Preferred Series A – 3,048,019

 

Preferred Series D – 2,542,296


Month #4  

10/01/15 through 10/31/15

 

Common – 27,200

 

Preferred Series A
– N/A

 

Preferred Series D
– N/A

 

Common – $19,1477

 

Preferred Series
A – N/A

 

Preferred Series
D – N/A

 

 

Common – 27,200

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – 82,774,478 – 27,200 = 82,747,678

 

Preferred Series A – 3,048,019

 

Preferred Series D – 2,542,296

Month #5  

11/01/15 through 11/30/15

 

Common –
196,856

 

Preferred Series A
– N/A

 

Preferred Series D
– N/A

 

Common – $19,1462

 

Preferred Series
A – N/A

 

Preferred Series
D – N/A

 

 

Common – 196,856

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – 82,774,478 – 27,200 = 82,747,678

 

Preferred Series A – 3,048,019

 

Preferred Series D – 2,542,296

Month #6  

12/01/15 through 12/31/15

 

Common – N/A

 

Preferred Series A
– N/A

 

Preferred Series D
– N/A

 

Common – N/A

 

Preferred Series
A – N/A

 

Preferred Series
D – N/A

 

 

Common – N/A

 

Preferred Series A – N/A

 

Preferred Series D – N/A

 

Common – 82,774,478 – 27,200 = 82,747,678

 

Preferred Series A – 3,048,019

 

Preferred Series D – 2,542,296

Total  

Common –
224,056

 

Preferred Series A
– N/A

 

Preferred Series D
– N/A

 

 

Common – $19.1464

 

Preferred Series
A – N/A

 

Preferred Series
D – N/A

 

 

Common – 224,056

 

Preferred Series A – N/A

 

Preferred Series D – N/A

  N/A

Footnote columns (c) and (d) of the table, by disclosing the following information in the aggregate for all plans or programs publicly announced:

 

a. The date each plan or program was announced – The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended.  
b. The dollar amount (or share or unit amount) approved – Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 7.5% or more from the net asset value of the shares.  
  Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00.  
c. The expiration date (if any) of each plan or program – The Fund’s repurchase plans are ongoing.  
d. Each plan or program that has expired during the period covered by the table – The Fund’s repurchase plans are ongoing.  
e. Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. – The Fund’s repurchase plans are ongoing.  


Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s Board of Trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

 

  (a)(1)

Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

 

  (a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

  (a)(3)

Not applicable.

 

  (b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

(12.other) Not applicable.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)                 The Gabelli Dividend & Income Trust                                                         

 

By (Signature and Title)*     /s/ Bruce N. Alpert                                                                              
                                                  Bruce N. Alpert, Principal Executive Officer

 

Date     3/9/2016                                                                                                                                  

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*         /s/ Bruce N. Alpert                                                                           
                                                  Bruce N. Alpert, Principal Executive Officer

 

Date     3/9/2016                                                                                                                                  

 

By (Signature and Title)*     /s/ Agnes Mullady                                                                               
                                                   Agnes Mullady, Principal Financial Officer and Treasurer

 

Date     3/9/2016                                                                                                                                  

*  Print the name and title of each signing officer under his or her signature.

EX-99.CODE ETH

Joint Code of Ethics for Chief Executive

and Senior Financial Officers of the Gabelli/GAMCO/TETON Funds

 

 

Each affiliated registered investment company (each a “ Company ”) is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Ethics, applicable to each Company’s Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, “ Senior Officers ”), sets forth policies to guide you in the performance of your duties.

As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns.

This Code of Ethics recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers currently or may in the future serve as Senior Officers of each of the Companies, as officers or employees of the investment advisor to the Companies or service providers thereof (the “ Advisor ”) and/or affiliates of the Advisor (the “Advisory Group”) and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by the Advisory Group. This Code of Ethics also recognizes that certain laws and regulations applicable to, and certain policies and procedures adopted by, the Companies or the Advisory Group govern your conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the Companies, including:

 

   

the Investment Company Act of 1940, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the “ 1940 Act ”);

 

   

the Investment Advisers Act of 1940, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the “ Advisers Act ”);

 

   

the Code of Ethics adopted by each Company pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the “ Trust’s 1940 Act Code of Ethics ”);

 

   

one or more codes of ethics adopted by the Advisory Group that have been reviewed and approved by those trustees/directors (the “ Directors ”) of each Company that are not “interested persons” of such Company (the “ Independent Directors ”) within the meaning of the 1940 Act (the “ Advisory Group’s 1940 Act Code of Ethics ” and, together with such Company’s 1940 Act Code of Ethics, the “ 1940 Act Codes of Ethics ”);

 

Revised: July 30, 2014

 

1


   

the policies and procedures adopted by each Company to address conflict of interest situations, such as procedures under Rule 10f-3, Rule 17a-7 and Rule 17e-1 under the 1940 Act (collectively, the “ Conflict Policies ”); and

 

   

the Advisory Group’s policies and procedures to address, among other things, conflict of interest situations and related matters (collectively, the “ Advisory Policies ”).

The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Conflict Policies and the Advisory Policies are referred to herein collectively as the “ Additional Conflict Rules ”.

This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not to be a violation of this Code of Ethics, unless and until the Directors shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of Ethics.

Senior Officers Should Act Honestly and Candidly

Each Senior Officer has a responsibility to each Company to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent with integrity.

Each Senior Officer must:

 

   

act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules;

 

   

comply with the laws, rules and regulations that govern the conduct of each Company’s operations and report any suspected violations thereof in accordance with the section below entitled “Compliance With Code Of Ethics”; and

 

   

adhere to a high standard of business ethics.

Conflicts Of Interest

A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of a Company.

 

Revised: July 30, 2014

 

2


Senior Officers are expected to use objective and unbiased standards when making decisions that affect each Company, keeping in mind that Senior Officers are subject to certain inherent conflicts of interest because Senior Officers of a Company also are or may be officers of other Companies and/or the Advisory Group (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the Additional Conflict Rules).

You are required to conduct the business of each Company in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to each Company where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Ethics.

If you are in doubt as to the application or interpretation of this Code of Ethics to you as a Senior Officer of a Company, you should make full disclosure of all relevant facts and circumstances to the Chief Compliance Officer of the Advisory Group (the “CCO”) and obtain the approval of the CCO prior to taking action.

Some conflict of interest situations that should always be approved by the CCO, if material, include the following:

 

   

the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which a Company has current or prospective business dealings (other than the Advisory Group), unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

 

   

any ownership interest in, or any consulting or employment relationship with, of any of the Companies’ service providers, other than the Advisory Group; or

 

   

a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer’s employment by the Advisory Group, such as compensation or equity ownership.

Disclosures

It is the policy of each Company to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that such Company files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public

 

Revised: July 30, 2014

 

3


communications made by such Company. As a Senior Officer, you are required to promote compliance with this policy and to abide by such Company’s standards, policies and procedures designed to promote compliance with this policy.

Each Senior Officer must:

   

familiarize himself or herself with the disclosure requirements applicable to each Company as well as the business and financial operations of each Company; and

 

   

not knowingly misrepresent, or cause others to misrepresent, facts about any Company to others, including to the Directors, such Company’s independent auditors, such Company’s counsel, any counsel to the Independent Directors, governmental regulators or self-regulatory organizations.

Compliance With Code Of Ethics

If you know of or suspect a violation of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Company, you must report that information on a timely basis to the CCO or report it anonymously by following the “whistle blower” policies adopted by the Advisory Group from time to time. No one will be subject to retaliation because of a good faith report of a suspected violation .

Each Company will follow these procedures in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics:

 

   

the CCO will take all appropriate action to investigate any actual or potential violations reported to him or her;

 

   

violations and potential violations will be reported to the Board of Directors of each affected Company after such investigation;

 

   

if the Board of Directors determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and

 

   

appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the Securities and Exchange Commission or other appropriate law enforcement authorities.

Waivers Of Code Of Ethics

Except as otherwise provided in this Code of Ethics, the CCO is responsible for applying this Code of Ethics to specific situations in which questions are presented to the CCO and has the authority to interpret this Code of Ethics in any particular situation. The CCO shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Ethics.

 

Revised: July 30, 2014

 

4


The CCO is authorized to consult, as appropriate, with counsel to the affected Company, the Advisory Group or the Independent Directors, and is encouraged to do so.

The Board of Directors of the affected Company is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form N-CSR, or otherwise, as provided by Securities and Exchange Commission rules.

Recordkeeping

Each Company will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Boards of Directors pursuant to this Code of Ethics:

 

   

that provided the basis for any amendment or waiver to this Code of Ethics; and

 

   

relating to any violation of this Code of Ethics and sanctions imposed for such violation, together with a written record of the approval or action taken by the relevant Board of Directors.

Confidentiality

All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Directors and their counsel, the Companies and their counsel, the Advisory Group and its counsel and any other advisors, consultants or counsel retained by the Directors, the Independent Directors or any committee of Directors.

Amendments

This Code of Ethics may not be amended as to any Company except in written form, which is specifically approved by a majority vote of the affected Company’s Directors, including a majority of its Independent Directors.

No Rights Created

This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of the Companies’ business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity.

 

Revised: July 30, 2014

 

5


ACKNOWLEDGMENT FORM

I have received and read the Joint Code of Ethics for Chief Executive and Senior Financial Officers, and I understand its contents. I agree to comply fully with the standards contained in the Code of Ethics and the Company’s related policies and procedures. I understand that I have an obligation to report any suspected violations of the Code of Ethics on a timely basis to the Chief Compliance Officer or report it anonymously by following the “whistle blower” policies adopted by the Advisory Group from time to time.

 

 

 

 
 

Printed Name

 
 

 

 
 

Signature

 
 

 

 
 

Date

 

 

Revised: July 30, 2014

 

6

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the

Sarbanes-Oxley Act

I, Bruce N. Alpert, certify that:

 

1.

I have reviewed this report on Form N-CSR of The Gabelli Dividend & Income Trust;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:      3/9/2016                        

 

    /s/ Bruce N. Alpert                                       

 

Bruce N. Alpert, Principal Executive Officer


Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the

Sarbanes-Oxley Act

I, Agnes Mullady, certify that:

 

1.

I have reviewed this report on Form N-CSR of The Gabelli Dividend & Income Trust;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and


  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:     3/9/2016                         

 

    /s/ Agnes Mullady                                                     

 

Agnes Mullady, Principal Financial Officer and

Treasurer

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the

Sarbanes-Oxley Act

I, Bruce N. Alpert, Principal Executive Officer of The Gabelli Dividend & Income Trust (the “Registrant”), certify that:

 

  1.

The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

  2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date:    3/9/2016                         

  

    /s/ Bruce N. Alpert                                      

  

Bruce N. Alpert, Principal Executive Officer

I, Agnes Mullady, Principal Financial Officer and Treasurer of The Gabelli Dividend & Income Trust (the “Registrant”), certify that:

 

  1.

The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

  2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date:    3/9/2016                         

  

   /s/ Agnes Mullady                                        

  

Agnes Mullady, Principal Financial Officer and

Treasurer