Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 2

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 2
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ers of Dividend Trust common shares will then hold shares of both Dividend Trust and Preferred Trust. The aggregate net asset value of your Dividend Trust common shares and the common shares of Preferred Trust you receive in the Transaction, together with any cash received in lieu of fractional shares, will equal the aggregate net asset value of the shares of Dividend Trust you own immediately prior to the Transaction (assuming you have not sold or otherwise disposed of your common shares of Dividend Trust prior to the distribution record date).

Q: Who will advise Preferred Trust?

A: Gabelli Funds, LLC (the “Investment Adviser”), the investment adviser to Dividend Trust, will also be the investment adviser to Preferred Trust.

Q: Will I have to pay any money in connection with the Transaction?

A: No.

You will not pay any commission or other similar fee in connection with the Transaction. In addition, the costs of organizing Preferred Trust and effecting the distribution of Preferred Trust common shares to Dividend Trust’s common shareholders, including the fees and expenses of counsel and accountants and printing, listing and registration fees, which are estimated to be approximately $1,100,000, will be borne by Dividend Trust. Preferred Trust will incur operating expenses on an ongoing basis, including legal, auditing, transfer agency and custodian expenses that, when aggregated with the fees payable by Dividend Trust for similar services after the distribution, will likely exceed the fees currently payable by Dividend Trust for those services. It is not expected that the Distribution will have a significant effect on the annual expenses of Dividend Trust as a percentage of its net assets.

Q: How do operating expenses paid by Preferred Trust compare to those payable by Dividend Trust?

A: The total operating expense ratio of Preferred Trust is expected to be higher than the total operating expense ratio of Dividend Trust due to the lower asset level of Preferred Trust.

Q: Will I have to pay any federal taxes as a result of the Transaction?

A: For the reasons discussed below, the Transaction is not currently expected to result in the recognition of significant taxable gain (and thus earnings and profits) by Dividend Trust and therefore is not expected to increase significantly the total amount of taxable distributions received by Dividend Trust shareholders for the year in which the Transaction occurs.

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