Company: GDV-PK
Filing Date: 2025-08-08
Form Type: N-14
Source: 0001829126-25-006008
Chunk: 75

Company: GABELLI DIVIDEND & INCOME TRUST
Filing Date: 2025-08-08
Form: N-14
Chunk 75
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 securities, or to redeem preferred shares or repay debt, when it may be disadvantageous to do so. Each Fund’s use of leverage may require it to sell portfolio investments at inopportune times in order to raise cash to redeem preferred shares or otherwise de-leverage so as to maintain required asset coverage amounts or comply with the mandatory redemption terms of any outstanding preferred shares. The use of leverage magnifies both the favorable and unfavorable effects of price movements in the investments made by the Funds. To the extent each Fund is leveraged in its investment operations, the Fund will be subject to substantial risk of loss. The Funds cannot assure that borrowings or the issuance of preferred shares or notes will result in a higher yield or return to the holders of the common shares. Also, to the extent each Fund utilizes leverage, a decline in net asset value could affect the ability of the Fund to make common share distributions and such a failure to make distributions could result in the Fund ceasing to qualify as a RIC under Subchapter M of the Code.

Any decline
in the net asset value of a Fund’s investments would be borne entirely by the holders of common shares. Therefore, if the market
value of a Fund’s portfolio declines, the leverage will result in a greater decrease in net asset value to the holders of common
shares than if the Fund were not leveraged. This greater net asset value decrease will also tend to cause a greater decline in the market
price for the common shares. A Fund might be in danger of failing to maintain the required asset coverage of its borrowings, notes or
preferred shares or of losing its ratings on its notes or preferred shares or, in an extreme case, a Fund’s current investment income
might not be sufficient to meet the distribution or interest requirements on the preferred shares or notes. In order to counteract such
an event, a Fund might need to liquidate investments in order to fund a redemption of some or all of the preferred shares or notes.

Preferred Share and Note Risk. The issuance of preferred shares or notes causes the net asset value and market value of the common shares to
become more volatile. If the dividend rate on the preferred shares or the interest rate on the notes approaches the net rate of return
on a Fund’s investment portfolio, the benefit of leverage to the holders of the common shares would be reduced. If the dividend
rate on the preferred shares or the interest rate on the notes plus the management fee annual rate of 1.00% exceeds the net rate of return