Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 50

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 50
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 if, for example, the rates at which they pay interest do not rise as much, or as quickly, as market interest rates in general. Conversely, variable and floating rate instruments generally will not increase in value if interest rates decline. The Funds also may invest in inverse floating rate securities, which may decrease in value if interest rates increase, and which also may exhibit greater price volatility than fixed rate obligations with similar credit quality. To the extent the Funds hold variable or floating rate instruments, a decrease (or, in the case of inverse floating rate securities, an increase) in market interest rates will adversely affect the income received from such securities, which may adversely affect the net asset value of the Funds’ common shares.

There is a risk that heightened interest rates may cause the economy to enter a recession. Any such recession would negatively impact the Funds and the investments held by the Funds. These impacts may include:

| ● | severe declines in a Fund’s net asset values; |

| ● | inability of the Funds to accurately or reliably value their portfolios; |

| ● | inability of the Funds to pay any dividends or distributions; |

| ● | inability of each Fund to maintain its status as a RIC under the Code; |

| ● | declines in the value of the Funds’ investments |

| ● | increased risk of default or bankruptcy by the companies in which the Funds invest; |

| ● | increased risk of companies in which the Funds invest being unable to weather an extended cessation of normal economic activity and thereby impairing their ability ot continue functioning as a going concern; and |

| ● | limited availability of new investment opportunities. |

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Inflation Risk.Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. Inflation rates may change frequently and significantly as a result of various factors, including unexpected shifts in the domestic or global economy and changes in economic policies, and the Funds’ investments may not keep pace with inflation, which may result in losses to Fund shareholders. As inflation increases, the real value of the Funds’ shares and dividends may decline. In addition, during any periods of rising inflation, interest rates of any debt securities held by the Funds would likely increase, which would tend to further reduce returns to shareholders. This risk is greater for fixed-income instruments with longer maturities.

Preferred Stock Risk.There are special risks associated with the Funds’ investing in preferred securities, including:

| ● | Deferral. Preferred