Company: GDV-PK
Filing Date: 2025-08-11
Form Type: 40-APP
Source: 0001829126-25-006051
Chunk: 7

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-11
Form: 40-APP
Chunk 7
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 Under normal market circumstances, Preferred Trust may invest up to 100% of its total assets in securities of non-U.S. issuers, whereas, whereas Dividend Trust currently may invest up to 35% of its total assets in securities of non-U.S. issuers.

| 2 | Under the investment advisory agreement entered into between Preferred Trust and the Adviser, the Adviser will manage the portfolio of Preferred Trust and also oversee the administration of aspects of Preferred Trust’s business. The investment advisory agreement provides that Preferred Trust will pay the Adviser a fee computed weekly and paid monthly at an annual rate of 1.00% of the value of the Preferred Trust’s average weekly net assets including proceeds attributable to any outstanding preferred shares and the outstanding principal amount of any debt securities the proceeds of which were used for investment purposes. The advisory fee rate to be paid by Preferred Trust to the Adviser is the same as the advisory fee rate paid by Dividend Trust to the Adviser. |

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The Board of Dividend Trust determined not to change the non-fundamental investment policies of Dividend Trust in a manner that would transform Dividend Trust into a fund focused on preferred securities and other income producing securities and permitted to invest up to 100% of its total assets in securities of non-U.S. issuers, because, in their view, many Dividend Trust investors likely wish to retain their investment in a closed-end fund that invests substantially all its assets in dividend paying securities or other income producing securities, and only up to 35% of its total assets in the securities of non-U.S. issuers.

The Board of Dividend Trust has been advised by counsel that the distribution of Preferred Trust Common Shares to the holders of Dividend Trust Common Shares likely will be a taxable event for holders of Dividend Trust Common Shares to some extent and, under certain circumstances, also will be a taxable event for Dividend Trust to some extent. Dividend Trust does not expect that it will recognize significant taxable gain on its distribution of the Preferred Trust Common Shares because it does not expect any of the contributed short-term debt securities to have a value at the time of their contribution to Preferred Trust significantly in excess of Dividend Trust’s tax basis for such securities and as a result does not expect the value of Preferred Trust Common Shares to be significantly in excess of Dividend Trust’s tax basis at the time of distribution. Similarly, the Transaction is not expected to increase significantly the total amount of taxable distributions received by holders