Company: GDV-PK
Filing Date: 2025-03-10
Form Type: N-CSR
Source: 0001829126-25-001652
Chunk: 63

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-03-10
Form: N-CSR
Chunk 63
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 if not required to do so by law.

In 2011, S&P lowered its long term sovereign credit rating on the U.S. to “AA+” from “AAA.” The downgrade by S&P increased volatility in both stock and bond markets, resulting in higher interest rates and higher Treasury yields, and increased the costs of all kinds of debt. On August 1, 2023, Fitch Ratings lowered its long-term sovereign credit rating on the U.S. to “AA+” from “AAA.” This and any further downgrades of U.S. credit ratings could have significant adverse effects on the U.S. economy generally and could result in significant adverse impacts on issuers of securities held by the Fund itself. The Investment Adviser cannot predict the effects of similar events in the future on the U.S. economy and securities markets or on the Fund’s portfolio. The Investment Adviser monitors developments and seeks to manage the Fund’s portfolio in a manner consistent with achieving the Fund’s investment objectives, but there can be no assurance that it will be successful in doing so and the Investment Adviser may not timely anticipate or manage existing, new or additional risks, contingencies or developments.

Prepayment Risks on Government Sponsored Mortgage-Backed Securities.The yield and maturity characteristics of government sponsored mortgage-backed securities differ from traditional debt securities. A major difference is that the principal amount of the obligations may generally be prepaid at any time because the underlying assets (i.e., loans) generally may be prepaid at any time. Prepayment risks include the following:

| ● | the                                                                                                                                
 relationship between prepayments and interest rates may give some lower grade government sponsored mortgage-backed securities less 
 potential for growth in value than conventional bonds with comparable maturities;                                                  |

| ● | in                                                                                                                                 
 addition, when interest rates fall, the rate of prepayments tends to increase. During such periods, the reinvestment of prepayment 
 proceeds by the Fund will generally be at lower rates than the rates that were carried by the obligations that have been prepaid;  |

| ● | because                                                                                                                     
 of these and other reasons, a government sponsored mortgage-backed security’s total return and maturity may be difficult to 
 predict; and                                                                                                                |

| ● | to                                                                                                                                 
 the extent that the Fund purchases government sponsored mortgage-backed securities at a premium, prepayments may result in loss of 
 the Fund’s principal investment to the extent of premium paid.                                                                     |

65

The Gabelli Dividend & Income Trust

Additional Fund Information (Continued) (Unaudited)