Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 76

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 76
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on a Fund’s portfolio, the leverage will result in a lower rate of return to the holders of common shares than if the Fund had not
issued preferred shares or notes. If a Fund has insufficient investment income and gains, all or a portion of the distributions to preferred
shareholders or interest payments to note holders would come from the common shareholders’ capital. Such distributions and interest
payments reduce the net assets attributable to common shareholders and do not reduce the principal due to noteholders on maturity or the
liquidation preference to which preferred shareholders are entitled. The Prospectus Supplement relating to any sale of preferred shares
will set forth dividend rate on such preferred shares.

<div align='center'>48</div>

In addition,
each Fund would pay (and the holders of common shares will bear) all costs and expenses relating to the issuance and ongoing maintenance
of the preferred shares or notes, including the advisory fees on the incremental assets attributable to the preferred shares or notes.

Holders of
preferred shares and notes may have different interests than holders of common shares and may at times have disproportionate influence
over a Fund’s affairs. As provided in the 1940 Act and subject to certain exceptions, a Fund may issue senior securities (which
may be stock, such as preferred shares, and/or securities representing debt, such as notes) only if immediately after such issuance the
value of such Fund’s total assets, less certain ordinary course liabilities, exceeds 300% of the amount of the debt outstanding
(i.e., for every dollar of indebtedness outstanding, the Fund is required to have at least three dollars of assets) and exceeds 200% of
the amount of preferred shares and debt outstanding (i.e., for every dollar in liquidation preference of preferred stock outstanding,
the Fund is required to have two dollars of assets), which is referred to as the “asset coverage” required by the 1940 Act.
In the event a Fund fails to maintain an asset coverage of 100% for any notes outstanding for certain periods of time, the 1940 Act requires
that either an event of default be declared or that the holders of such notes have the right to elect a majority of the Fund’s Trustees
until asset coverage recovers to 110%. In addition, holders of preferred shares, voting separately as a single class, have the right (subject
to the rights of noteholders) to elect two members of the Board at all times and in the event dividends become two full years in arrears
would have the right