Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 86

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 86
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 for sale.

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Legal, Tax and Regulatory Risks.Legal, tax and regulatory changes could occur that may have material adverse effects on the Funds or their shareholders. For example, the regulatory and tax environment for derivative instruments in which the Funds may participate is evolving, and such changes in the regulation or taxation of derivative instruments may have material adverse effects on the value of derivative instruments held by the Funds and the ability of the Funds to pursue their investment strategies. Changes to the U.S. federal tax laws and interpretations thereof could adversely affect an investment in the Funds.

We cannot assure you what percentage of the distributions paid on the Funds’ shares, if any, will consist of tax-advantaged qualified dividend income or long-term capital gains or what the tax rates on various types of income will be in future years.

To qualify for the favorable U.S. federal income tax treatment generally accorded to RICs under the Code, each Fund must, among other things, meet certain asset diversification tests, derive in each taxable year at least 90% of its gross income from certain prescribed sources and distribute for each taxable year at least 90% of its “investment company taxable income.” Statutory limitations on distributions on the common shares if a Fund fails to satisfy the 1940 Act’s asset coverage requirements could jeopardize the Fund’s ability to meet such distribution requirements. While each Fund presently intends to purchase or redeem notes or preferred shares, if any, to the extent necessary in order to maintain compliance with such asset coverage requirements, there can be no assurance that such actions can be effected in time to meet the Code requirements. If for any taxable year a Fund does not qualify as a RIC, all of its taxable income for that year (including its net capital gain) would be subject to tax at regular corporate rates without any deduction for distributions to shareholders, and such distributions would be taxable as ordinary dividends to the extent of the Fund’s current and accumulated earnings and profits. The resulting corporate taxes would materially reduce such Fund’s net assets and the amount of cash available for distribution to shareholders.

Investment Dilution Risk.The Funds’ investors do not have preemptive rights to any shares the Funds may issue in the future. Each Fund’s Agreement and Declaration of Trust authorizes it to issue an unlimited number of shares. The Board may make certain amendments to each Fund’s Agreement and Declaration of Trust. After an investor purchases shares, a Fund may sell additional shares or other classes of shares in the future or issue equity interests in