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

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 25
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 to list Preferred Trust Common Shares on the NYSE. The Distribution Record Date and the Distribution Date will be determined by the Board following shareholder approval of the Transaction. The investment objective and policies and other matters relating to Preferred Trust’s structure are described below. See “Investment Objectives and Policies of Dividend Trust and Preferred Trust.”

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The Board believes that the Transaction will result in the following benefits to Dividend Trust common shareholders:

1. The common shareholders will receive shares of an investment company with a different investment strategy from Dividend Trust, focused primarily on preferred securities which potentially offer attractive opportunities for capital appreciation and current income and may be less sensitive to interest rate fluctuations than other types of income-producing securities.

2. The common shareholders will receive shares of an investment company with a different risk-return profile from Dividend Trust, thereby providing common shareholders with the following alternatives: (a) retaining their shares in both Dividend Trust and Preferred Trust; (b) selling their Preferred Trust shares and retaining their Dividend Trust shares; or (c) selling their Dividend Trust shares and retaining their Preferred Trust shares. As a consequence, Dividend Trust’s common shareholders may more closely align their investment portfolio with their desired exposure to different segments of the equity market. If a shareholder sells either of his or her Dividend Trust Common Shares or Preferred Trust Common Shares, the shareholder can be expected to incur brokerage commissions and such sale may constitute a taxable event for the shareholder.

3. Preferred Trust Common Shares will be issued at a much lower transaction cost to investors than is typically the case for a newly-organized closed-end equity fund since there will be no underwriting discounts, sales charges, or commissions. The Transaction will not result in an increase in the aggregate net assets of Dividend Trust and Preferred Trust.

The Board believes that the benefits of the Transaction outlined above outweigh the costs of the Transaction. For a description of the costs and expenses relating to the Transaction, see “Transaction Expenses” below.

Certain U.S. Federal Income Tax Consequences Of The Transaction

The following discussion should be read in conjunction with the discussion in “Taxation” below and is subject to the qualifications and assumptions set forth therein.

An amount equal to the fair market value of Preferred Trust Common Shares distributed to a Dividend Trust common shareholder plus the amount of any cash in lieu of fractional Preferred Trust Common Shares distributed to a Dividend Trust common shareholder (collectively, the “amount of the distribution”) will be treated as a taxable dividend to the extent of Div