UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number 811-21423
The Gabelli Dividend & Income Trust
(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
Rye, New York 10580-1422
(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
(Name and address of agent for service)
registrant’s telephone number, including area code: 1-800-422-3554
Date of fiscal year end: December 31
Date of reporting period: June 30, 2010
Form N-CSR is to be used by management investment companies to file reports with the Commission not
later than 10 days after the transmission to stockholders of any report that is required to be
transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR
270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission
will make this information public. A registrant is not required to respond to the collection of
information contained in Form N-CSR unless the Form displays a currently valid Office of Management
and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the burden to Secretary,
Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed
this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
The Gabelli Dividend &
Income Trust
Semi-Annual Report
June 30, 2010
Income Trust
Semi-Annual Report
June 30, 2010
|
 |
|
Mario J. Gabelli, CFA
|
Barbara G. Marcin, CFA |
To Our Shareholders,
The Gabelli Dividend & Income Trust’s (the “Fund”) Net Asset Value (“NAV”) total return was
(7.7)% during the semi-annual period ended June 30, 2010, compared with returns of (6.6)% and
(5.0)% for the Standard & Poor’s (“S&P”) 500 Index and the Dow Jones Industrial Average,
respectively. The total return for the Fund’s publicly traded shares was (5.9)% during the first
half of the year. For the one year period ended June 30, 2010, the Fund’s NAV total return was
20.2% and the total return for the Fund’s publicly traded shares was 26.0%, compared with returns
of 14.4% and 18.9% for the S&P 500 Index and the Dow Jones Industrial Average, respectively. On
June 30, 2010, the Fund’s NAV per share was $14.05, while the price of the publicly traded shares
closed at $12.00 on the New York Stock Exchange (“NYSE”).
| Enclosed are the financial statements and the investment portfolio as of June 30, 2010. |
Comparative Results
Average Annual Returns through June 30, 2010 (a) (Unaudited)
| Since | ||||||||||||||||||||||||
| Year to | Inception | |||||||||||||||||||||||
| Quarter | Date | 1 Year | 3 Year | 5 Year | (11/28/03) | |||||||||||||||||||
Gabelli Dividend & Income Trust |
||||||||||||||||||||||||
NAV Total Return (b) |
(11.68 | )% | (7.72 | )% | 20.24 | % | (11.24 | )% | (0.65 | )% | 2.01 | % | ||||||||||||
Investment Total Return (c) |
(11.64 | ) | (5.93 | ) | 26.00 | (11.28 | ) | (0.69 | ) | (0.15 | ) | |||||||||||||
S&P 500 Index |
(11.41 | ) | (6.64 | ) | 14.43 | (9.80 | ) | (0.79 | ) | 1.63 | ||||||||||||||
Dow Jones Industrial Average |
(9.36 | ) | (5.00 | ) | 18.90 | (7.38 | ) | 1.65 | 2.57 | |||||||||||||||
Nasdaq Composite Index |
(12.04 | ) | (7.05 | ) | 14.94 | (6.77 | ) | 0.50 | 1.12 | |||||||||||||||
| (a) | Returns represent past performance and do not guarantee future results. Investment returns and the principal value of an investment will fluctuate. When shares are sold, they may be worth more or less than their original cost. Current performance may be lower or higher than the performance data presented. Visit www.gabelli.com for performance information as of the most recent month end. Performance returns for periods of less than one year are not annualized. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The Dow Jones Industrial Average is an unmanaged index of 30 large capitalization stocks. The S&P 500 and the Nasdaq Composite Indices are unmanaged indicators of stock market performance. Dividends are considered reinvested except for the Nasdaq Composite Index. You cannot invest directly in an index. | |
| (b) | Total returns and average annual returns reflect changes in the NAV per share and reinvestment of distributions at NAV on the ex-dividend date and are net of expenses. Since inception return is based on an initial NAV of $19.06. | |
| (c) | Total returns and average annual returns reflect changes in closing market values on the New York Stock Exchange and reinvestment of distributions. Since inception return is based on an initial offering price of $20.00. |
We have separated the portfolio managers’ commentary from the financial statements and investment
portfolio due to corporate governance regulations stipulated by the Sarbanes-Oxley Act of 2002. We
have done this to ensure that the content of the portfolio managers’ commentary is unrestricted.
The financial statements and investment portfolio are mailed separately from the commentary. Both
the commentary and the financial statements, including the portfolio of investments, will be
available on our website at www.gabelli.com/funds.
THE GABELLI DIVIDEND & INCOME TRUST
Summary of Portfolio Holdings (Unaudited)
Summary of Portfolio Holdings (Unaudited)
The following table presents portfolio holdings as a percent of total investments as of June 30,
2010:
Financial Services |
11.6 | % | ||
Food and Beverage |
11.3 | % | ||
Energy and Utilities: Integrated |
10.6 | % | ||
Energy and Utilities: Oil |
9.6 | % | ||
Telecommunications |
6.3 | % | ||
U.S. Government Obligations |
5.9 | % | ||
Health Care |
4.8 | % | ||
Energy and Utilities: Electric |
4.7 | % | ||
Energy and Utilities: Natural Gas |
4.1 | % | ||
Diversified Industrial |
3.9 | % | ||
Consumer Products |
3.6 | % | ||
Energy and Utilities: Services |
3.0 | % | ||
Retail |
2.4 | % | ||
Aerospace |
2.0 | % | ||
Computer Software and Services |
1.8 | % | ||
Cable and Satellite |
1.6 | % | ||
Electronics |
1.4 | % | ||
Specialty Chemicals |
1.2 | % | ||
Equipment and Supplies |
1.2 | % | ||
Automotive: Parts and Accessories |
1.0 | % | ||
Entertainment |
0.9 | % | ||
Energy and Utilities: Water |
0.9 | % | ||
Metals and Mining |
0.8 | % | ||
Environmental Services |
0.7 | % | ||
Business Services |
0.7 | % | ||
Broadcasting |
0.6 | % | ||
Paper and Forest Products |
0.6 | % | ||
Machinery |
0.5 | % | ||
Transportation |
0.5 | % | ||
Energy and Utilities |
0.3 | % | ||
Wireless Communications |
0.3 | % | ||
Computer Hardware |
0.3 | % | ||
Hotels and Gaming |
0.2 | % | ||
Agriculture |
0.2 | % | ||
Automotive |
0.2 | % | ||
Publishing |
0.1 | % | ||
Communications Equipment |
0.1 | % | ||
Consumer Services |
0.1 | % | ||
Real Estate |
0.0 | % | ||
Building and Construction |
0.0 | % | ||
Manufactured Housing and Recreational Vehicles |
0.0 | % | ||
| 100.0 | % | |||
The Fund files a complete schedule of portfolio holdings with the Securities and Exchange
Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q, the last
of which was filed for the quarter ended March 31, 2010. Shareholders may obtain this information
at www.gabelli.com or by calling the Fund at 800-GABELLI (800-422-3554). The Fund’s Form N-Q is
available on the SEC’s website at www.sec.gov and may also be reviewed and copied at the SEC’s
Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
Proxy Voting
The Fund files Form N-PX with its complete proxy voting record for the twelve months ended
June 30th, no later than August 31st of each year. A description of the Fund’s proxy voting
policies, procedures, and how the Fund voted proxies relating to portfolio securities is available
without charge, upon request, by (i) calling 800-GABELLI (800-422-3554); (ii) writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; or (iii) visiting the SEC’s website at
www.sec.gov.
Shareholder Meeting — May 17, 2010 — Final Results
The Fund’s Annual Meeting of Shareholders was held on May 17, 2010 at the Greenwich Library in
Greenwich, Connecticut. At that meeting, common and preferred shareholders, voting together as a
single class, elected Mario J. Gabelli, Mario d’Urso, and Michael J. Melarkey as Trustees of the
Fund. A total of 74,261,816 votes, 75,098,260 votes, and 75,215,333 votes were cast in favor of
each Trustee and a total of 4,400,825 votes, 3,564,381 votes, and 3,447,308 votes were withheld for
each Trustee, respectively.
Anthony J. Colavita, James P. Conn, Frank J. Fahrenkopf, Jr., Salvatore M. Salibello, Edward
T. Tokar, Anthonie C. van Ekris, and Salvatore J. Zizza continue to serve in their capacities as
Trustees of the Fund.
We thank you for your participation and appreciate your continued support.
2
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS — 91.3% |
||||||||||||
Aerospace — 1.9% |
||||||||||||
| 10,000 | Goodrich Corp. |
$ | 281,823 | $ | 662,500 | |||||||
| 40,000 | Kaman Corp. |
748,702 | 884,800 | |||||||||
| 164,000 | Rockwell Automation Inc. |
8,113,655 | 8,050,760 | |||||||||
| 2,000,000 | Rolls-Royce Group plc† |
14,847,048 | 16,808,603 | |||||||||
| 180,000,000 | Rolls-Royce Group plc,
Cl. C† |
276,353 | 268,938 | |||||||||
| 80,000 | The Boeing Co. |
4,856,901 | 5,020,000 | |||||||||
| 29,124,482 | 31,695,601 | |||||||||||
Agriculture — 0.2% |
||||||||||||
| 100,000 | Archer-Daniels-
Midland Co. |
2,706,857 | 2,582,000 | |||||||||
Automotive — 0.1% |
||||||||||||
| 20,000 | Navistar International
Corp.† |
458,857 | 984,000 | |||||||||
Automotive: Parts and Accessories — 1.0% |
||||||||||||
| 27,000 | BorgWarner Inc.† |
892,619 | 1,008,180 | |||||||||
| 370,000 | Genuine Parts Co. |
12,454,843 | 14,596,500 | |||||||||
| 13,347,462 | 15,604,680 | |||||||||||
Building and Construction — 0.0% |
||||||||||||
| 30,000 | Layne Christensen Co.† |
825,175 | 728,100 | |||||||||
Business Services — 0.7% |
||||||||||||
| 165,000 | Diebold Inc. |
5,797,438 | 4,496,250 | |||||||||
| 120,000 | Intermec Inc.† |
2,232,531 | 1,230,000 | |||||||||
| 34,000 | Lender Processing
Services Inc. |
1,146,789 | 1,064,540 | |||||||||
| 20,000 | MasterCard Inc., Cl. A |
3,089,996 | 3,990,600 | |||||||||
| 18,000 | PHH Corp.† |
360,620 | 342,720 | |||||||||
| 150,000 | Trans-Lux Corp.† (a) |
1,037,132 | 91,500 | |||||||||
| 13,664,506 | 11,215,610 | |||||||||||
Cable and Satellite — 1.6% |
||||||||||||
| 475,000 | Cablevision Systems Corp.,
Cl. A |
10,152,710 | 11,404,750 | |||||||||
| 16,000 | Cogeco Inc. |
316,415 | 450,895 | |||||||||
| 10,000 | DIRECTV, Cl. A† |
185,853 | 339,200 | |||||||||
| 235,000 | DISH Network Corp.,
Cl. A |
5,297,338 | 4,265,250 | |||||||||
| 50,000 | EchoStar Corp., Cl. A† |
1,307,563 | 954,000 | |||||||||
| 80,000 | Liberty Global Inc., Cl. A† |
1,656,034 | 2,079,200 | |||||||||
| 33,000 | Liberty Global Inc., Cl. C† |
730,884 | 857,670 | |||||||||
| 175,000 | Rogers Communications
Inc., Cl. B |
2,249,983 | 5,733,000 | |||||||||
| 21,896,780 | 26,083,965 | |||||||||||
Communications Equipment — 0.1% |
||||||||||||
| 30,000 | Thomas & Betts Corp.† |
790,716 | 1,041,000 | |||||||||
Computer Hardware — 0.1% |
||||||||||||
| 30,000 | SanDisk Corp.† |
287,056 | 1,262,100 | |||||||||
Computer Software and Services — 1.8% |
||||||||||||
| 60,000 | Microsoft Corp. |
1,441,981 | 1,380,600 | |||||||||
| 415,000 | Sybase Inc.† |
26,723,296 | 26,833,900 | |||||||||
| 90,000 | Yahoo! Inc.† |
2,516,109 | 1,244,700 | |||||||||
| 30,681,386 | 29,459,200 | |||||||||||
Consumer Products — 3.6% |
||||||||||||
| 185,000 | Alberto-Culver Co. |
6,164,961 | 5,011,650 | |||||||||
| 20,000 | Altria Group Inc. |
375,937 | 400,800 | |||||||||
| 45,000 | Avon Products Inc. |
1,171,773 | 1,192,500 | |||||||||
| 410,000 | Eastman Kodak Co.† |
3,211,996 | 1,779,400 | |||||||||
| 90,000 | Fortune Brands Inc. |
3,659,121 | 3,526,200 | |||||||||
| 50,000 | Hanesbrands Inc.† |
1,118,462 | 1,203,000 | |||||||||
| 75,000 | Harman International
Industries Inc.† |
2,964,957 | 2,241,750 | |||||||||
| 200,000 | Kimberly-Clark Corp. |
13,012,319 | 12,126,000 | |||||||||
| 25,000 | Philip Morris
International Inc. |
1,011,008 | 1,146,000 | |||||||||
| 1,000,000 | Swedish Match AB |
12,269,968 | 21,969,002 | |||||||||
| 145,000 | The Procter & Gamble Co. |
7,977,094 | 8,697,100 | |||||||||
| 52,937,596 | 59,293,402 | |||||||||||
Consumer Services — 0.1% |
||||||||||||
| 20,000 | Dollar Thrifty Automotive
Group Inc.† |
831,900 | 852,200 | |||||||||
Diversified Industrial — 3.4% |
||||||||||||
| 100,000 | Bouygues SA |
3,516,295 | 3,903,957 | |||||||||
| 150,000 | Cooper Industries plc |
4,902,625 | 6,600,000 | |||||||||
| 490,000 | General Electric Co. |
12,899,470 | 7,065,800 | |||||||||
| 280,000 | Honeywell
International Inc. |
9,789,754 | 10,928,400 | |||||||||
| 95,000 | ITT Corp. |
4,299,475 | 4,267,400 | |||||||||
| 128,000 | Owens-Illinois Inc.† |
4,480,032 | 3,385,600 | |||||||||
| 7,000 | Sulzer AG |
690,270 | 657,884 | |||||||||
| 300,000 | Textron Inc. |
2,689,261 | 5,091,000 | |||||||||
| 950,000 | Tomkins plc |
4,601,533 | 3,219,184 | |||||||||
| 275,620 | Tyco International Ltd. |
11,791,057 | 9,710,093 | |||||||||
| 59,659,772 | 54,829,318 | |||||||||||
Electronics — 1.4% |
||||||||||||
| 940,000 | Intel Corp. |
19,513,547 | 18,283,000 | |||||||||
| 200,000 | Tyco Electronics Ltd. |
7,209,682 | 5,076,000 | |||||||||
| 26,723,229 | 23,359,000 | |||||||||||
See accompanying notes to financial statements.
3
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) |
||||||||||||
Energy and Utilities: Electric — 4.7% |
||||||||||||
| 40,000 | Allegheny Energy Inc. |
$ | 668,340 | $ | 827,200 | |||||||
| 85,000 | ALLETE Inc. |
2,788,153 | 2,910,400 | |||||||||
| 235,000 | American Electric
Power Co. Inc. |
7,356,987 | 7,590,500 | |||||||||
| 720 | Brookfield Infrastructure
Partners LP |
15,120 | 11,426 | |||||||||
| 300,000 | DPL Inc. |
5,736,577 | 7,170,000 | |||||||||
| 33,000 | Edison International |
1,407,705 | 1,046,760 | |||||||||
| 270,000 | Electric Power
Development Co. Ltd. |
6,584,683 | 8,593,338 | |||||||||
| 695,000 | Great Plains Energy Inc. |
19,696,505 | 11,828,900 | |||||||||
| 365,000 | Integrys Energy Group Inc. |
17,714,399 | 15,965,100 | |||||||||
| 105,000 | Pepco Holdings Inc. |
1,970,492 | 1,646,400 | |||||||||
| 230,000 | Pinnacle West Capital Corp. |
8,967,575 | 8,362,800 | |||||||||
| 100,000 | Southern Co. |
2,893,572 | 3,328,000 | |||||||||
| 222,000 | UniSource Energy Corp. |
5,628,352 | 6,699,960 | |||||||||
| 81,428,460 | 75,980,784 | |||||||||||
Energy and Utilities: Integrated — 10.6% |
||||||||||||
| 12,000 | Alliant Energy Corp. |
305,115 | 380,880 | |||||||||
| 150,000 | Ameren Corp. |
6,481,368 | 3,565,500 | |||||||||
| 50,000 | Avista Corp. |
926,534 | 976,500 | |||||||||
| 55,000 | Black Hills Corp. |
1,514,660 | 1,565,850 | |||||||||
| 40,000 | CH Energy Group Inc. |
1,728,883 | 1,569,600 | |||||||||
| 108,000 | Chubu Electric
Power Co. Inc. |
2,458,019 | 2,689,770 | |||||||||
| 150,000 | CONSOL Energy Inc. |
6,316,307 | 5,064,000 | |||||||||
| 185,000 | Consolidated Edison Inc. |
7,545,477 | 7,973,500 | |||||||||
| 70,000 | Dominion Resources Inc. |
2,979,664 | 2,711,800 | |||||||||
| 160,000 | Duke Energy Corp. |
2,228,522 | 2,560,000 | |||||||||
| 400,000 | Edison SpA |
932,177 | 441,205 | |||||||||
| 630,000 | El Paso Corp. |
7,874,688 | 6,999,300 | |||||||||
| 128,000 | Endesa SA |
5,062,086 | 2,738,407 | |||||||||
| 450,000 | Enel SpA |
2,812,556 | 1,920,490 | |||||||||
| 60,000 | Exelon Corp. |
3,463,574 | 2,278,200 | |||||||||
| 125,000 | FirstEnergy Corp. |
4,361,666 | 4,403,750 | |||||||||
| 116,000 | Hawaiian Electric
Industries Inc. |
2,696,298 | 2,642,480 | |||||||||
| 250,000 | Hera SpA |
552,073 | 413,018 | |||||||||
| 121,500 | Hokkaido Electric
Power Co. Inc. |
2,282,208 | 2,624,724 | |||||||||
| 121,500 | Hokuriku Electric
Power Co. |
2,131,359 | 2,674,196 | |||||||||
| 8,000 | Iberdrola SA |
65,156 | 45,314 | |||||||||
| 105,000 | Iberdrola SA, ADR |
5,028,792 | 2,355,150 | |||||||||
| 308 | Iberdrola SA, I -10 Shares† |
1,648 | 1,740 | |||||||||
| 85,000 | Korea Electric Power Corp.,
ADR† |
1,253,867 | 1,094,800 | |||||||||
| 121,500 | Kyushu Electric
Power Co. Inc. |
2,374,466 | 2,734,660 | |||||||||
| 22,000 | Maine & Maritimes Corp. |
626,971 | 974,820 | |||||||||
| 72,000 | MGE Energy Inc. |
2,324,253 | 2,594,880 | |||||||||
| 35,102 | National Grid plc, ADR |
1,588,562 | 1,292,807 | |||||||||
| 220,000 | NextEra Energy Inc. |
7,596,481 | 10,727,200 | |||||||||
| 235,000 | NiSource Inc. |
4,914,069 | 3,407,500 | |||||||||
| 530,000 | NSTAR |
12,560,747 | 18,550,000 | |||||||||
| 400,000 | OGE Energy Corp. |
9,619,180 | 14,624,000 | |||||||||
| 27,000 | Ormat Technologies Inc. |
405,000 | 763,830 | |||||||||
| 300,000 | Progress Energy Inc. |
13,460,881 | 11,766,000 | |||||||||
| 250,000 | Public Service Enterprise
Group Inc. |
7,640,220 | 7,832,500 | |||||||||
| 121,500 | Shikoku Electric
Power Co. Inc. |
2,264,565 | 3,484,974 | |||||||||
| 15,000 | TECO Energy Inc. |
255,758 | 226,050 | |||||||||
| 121,500 | The Chugoku Electric
Power Co. Inc. |
2,194,052 | 2,513,414 | |||||||||
| 50,000 | The Empire District
Electric Co. |
1,081,365 | 938,500 | |||||||||
| 121,500 | The Kansai Electric
Power Co. Inc. |
2,333,021 | 2,969,649 | |||||||||
| 108,000 | The Tokyo Electric
Power Co. Inc. |
2,545,172 | 2,945,066 | |||||||||
| 121,500 | Tohoku Electric
Power Co. Inc. |
2,112,763 | 2,617,853 | |||||||||
| 200,000 | Vectren Corp. |
5,450,272 | 4,732,000 | |||||||||
| 450,000 | Westar Energy Inc. |
8,859,242 | 9,724,500 | |||||||||
| 85,000 | Wisconsin Energy Corp. |
2,690,561 | 4,312,900 | |||||||||
| 150,000 | Xcel Energy Inc. |
2,485,848 | 3,091,500 | |||||||||
| 166,386,146 | 172,514,777 | |||||||||||
Energy and Utilities: Natural Gas — 4.1% |
||||||||||||
| 20,000 | Atmos Energy Corp. |
503,678 | 540,800 | |||||||||
| 22,000 | Delta Natural Gas Co. Inc. |
554,413 | 643,500 | |||||||||
| 6,000 | Energen Corp. |
124,550 | 265,980 | |||||||||
| 160,356 | GDF Suez, Strips |
0 | 196 | |||||||||
| 20,000 | Kinder Morgan Energy
Partners LP |
824,553 | 1,301,200 | |||||||||
| 350,000 | National Fuel Gas Co. |
9,372,112 | 16,058,000 | |||||||||
| 190,000 | Nicor Inc. |
6,469,021 | 7,695,000 | |||||||||
| 200,000 | ONEOK Inc. |
4,976,022 | 8,650,000 | |||||||||
| 180,000 | Sempra Energy |
5,394,832 | 8,422,200 | |||||||||
| 35,000 | South Jersey Industries Inc. |
839,202 | 1,503,600 | |||||||||
| 140,000 | Southern Union Co. |
2,884,173 | 3,060,400 | |||||||||
| 190,000 | Southwest Gas Corp. |
4,719,351 | 5,605,000 | |||||||||
| 610,000 | Spectra Energy Corp. |
13,426,444 | 12,242,700 | |||||||||
| 43,000 | The Laclede Group Inc. |
1,222,566 | 1,424,590 | |||||||||
| 51,310,917 | 67,413,166 | |||||||||||
See accompanying notes to financial statements.
4
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) |
||||||||||||
Energy and Utilities: Oil — 9.6% |
||||||||||||
| 69,000 | Anadarko Petroleum Corp. |
$ | 3,075,356 | $ | 2,490,210 | |||||||
| 37,000 | Apache Corp. |
1,708,764 | 3,115,030 | |||||||||
| 44,000 | BG Group plc, ADR |
1,780,065 | 3,286,800 | |||||||||
| 125,000 | BP plc, ADR |
5,640,601 | 3,610,000 | |||||||||
| 100,774 | Chesapeake Energy Corp. |
1,945,012 | 2,111,215 | |||||||||
| 225,000 | Chevron Corp. |
13,416,226 | 15,268,500 | |||||||||
| 318,000 | ConocoPhillips |
16,968,110 | 15,610,620 | |||||||||
| 78,000 | Devon Energy Corp. |
3,448,499 | 4,751,760 | |||||||||
| 168,000 | Eni SpA, ADR |
6,167,620 | 6,140,400 | |||||||||
| 205,000 | Exxon Mobil Corp. |
9,587,886 | 11,699,350 | |||||||||
| 36,000 | Hess Corp. |
1,130,043 | 1,812,240 | |||||||||
| 470,000 | Marathon Oil Corp. |
16,539,721 | 14,612,300 | |||||||||
| 136,000 | Murphy Oil Corp. |
6,865,210 | 6,738,800 | |||||||||
| 232,000 | Occidental Petroleum Corp. |
8,756,011 | 17,898,800 | |||||||||
| 8,000 | PetroChina Co. Ltd., ADR |
584,148 | 877,840 | |||||||||
| 100,000 | Petroleo Brasileiro SA,
ADR |
4,150,271 | 3,432,000 | |||||||||
| 270,000 | Repsol YPF SA, ADR |
5,719,267 | 5,427,000 | |||||||||
| 185,000 | Royal Dutch Shell plc,
Cl. A, ADR |
8,818,890 | 9,290,700 | |||||||||
| 775,000 | Statoil ASA, ADR |
11,384,502 | 14,841,250 | |||||||||
| 150,000 | Sunoco Inc. |
7,207,011 | 5,215,500 | |||||||||
| 185,000 | Total SA, ADR |
8,118,724 | 8,258,400 | |||||||||
| 143,011,937 | 156,488,715 | |||||||||||
Energy and Utilities: Services — 3.0% |
||||||||||||
| 210,000 | ABB Ltd., ADR |
2,290,480 | 3,628,800 | |||||||||
| 74,000 | Cameron
International Corp.† |
1,023,207 | 2,406,480 | |||||||||
| 102,000 | Diamond Offshore
Drilling Inc. |
5,683,975 | 6,343,380 | |||||||||
| 540,000 | Halliburton Co. |
14,272,792 | 13,257,000 | |||||||||
| 5,000 | Nabors Industries Ltd.† |
110,564 | 88,100 | |||||||||
| 10,000 | Noble Corp. |
254,820 | 309,100 | |||||||||
| 38,000 | Oceaneering
International Inc.† |
1,614,498 | 1,706,200 | |||||||||
| 185,000 | Rowan Companies Inc.† |
6,496,511 | 4,058,900 | |||||||||
| 120,000 | Schlumberger
Ltd. |
3,977,835 | 6,640,800 | |||||||||
| 46,000 | Transocean Ltd.† |
3,995,781 | 2,131,180 | |||||||||
| 650,000 | Weatherford
International Ltd.† |
12,838,606 | 8,541,000 | |||||||||
| 52,559,069 | 49,110,940 | |||||||||||
Energy and Utilities: Water — 0.9% |
||||||||||||
| 11,000 | American States
Water Co. |
273,608 | 364,540 | |||||||||
| 360,000 | American Water
Works Co. Inc. |
7,524,100 | 7,416,000 | |||||||||
| 74,000 | Aqua America Inc. |
1,237,577 | 1,308,320 | |||||||||
| 6,000 | Artesian Resources
Corp., Cl. A |
113,635 | 110,760 | |||||||||
| 3,000 | California Water
Service Group |
94,710 | 107,100 | |||||||||
| 11,500 | Connecticut Water
Service Inc. |
276,036 | 241,730 | |||||||||
| 2,000 | Consolidated Water
Co. Ltd. |
26,006 | 22,760 | |||||||||
| 6,000 | Middlesex Water Co. |
111,082 | 95,100 | |||||||||
| 60,000 | Pennichuck Corp. |
1,362,461 | 1,321,800 | |||||||||
| 90,000 | SJW Corp. |
1,564,611 | 2,109,600 | |||||||||
| 25,000 | Southwest Water Co. |
269,611 | 262,000 | |||||||||
| 12,000 | The York Water Co. |
156,854 | 170,400 | |||||||||
| 25,000 | United Utilities Group plc,
ADR |
662,400 | 390,250 | |||||||||
| 13,672,691 | 13,920,360 | |||||||||||
Entertainment — 0.9% |
||||||||||||
| 8,000 | Grupo Televisa SA, ADR |
79,516 | 139,280 | |||||||||
| 102,900 | Madison Square
Garden Inc., Cl. A† |
1,939,862 | 2,024,043 | |||||||||
| 250,000 | Take-Two Interactive
Software Inc.† |
6,029,665 | 2,250,000 | |||||||||
| 200,000 | Time Warner Inc. |
6,387,568 | 5,782,000 | |||||||||
| 210,000 | Vivendi |
6,421,271 | 4,318,076 | |||||||||
| 20,857,882 | 14,513,399 | |||||||||||
Environmental Services — 0.7% |
||||||||||||
| 1,250 | Suez Environnement Co.
SA |
0 | 20,766 | |||||||||
| 12,375 | Veolia Environnement |
395,937 | 292,895 | |||||||||
| 350,000 | Waste Management Inc. |
12,663,686 | 10,951,500 | |||||||||
| 13,059,623 | 11,265,161 | |||||||||||
Equipment and Supplies — 1.2% |
||||||||||||
| 95,000 | CIRCOR International Inc. |
1,731,985 | 2,430,100 | |||||||||
| 57,000 | Lufkin Industries Inc. |
488,572 | 2,222,430 | |||||||||
| 65,000 | Mueller Industries Inc. |
2,587,485 | 1,599,000 | |||||||||
| 420,000 | RPC Inc. |
1,866,263 | 5,733,000 | |||||||||
| 212,000 | Tenaris SA, ADR |
9,805,561 | 7,337,320 | |||||||||
| 16,479,866 | 19,321,850 | |||||||||||
Financial Services — 11.4% |
||||||||||||
| 166,000 | Aflac Inc. |
8,808,884 | 7,083,220 | |||||||||
| 80,000 | AllianceBernstein
Holding LP |
1,519,748 | 2,067,200 | |||||||||
| 450,000 | American Express Co. |
19,430,810 | 17,865,000 | |||||||||
| 10,000 | Astoria Financial Corp. |
115,083 | 137,600 | |||||||||
| 590,000 | Bank of America Corp. |
8,787,139 | 8,478,300 | |||||||||
See accompanying notes to financial statements.
5
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) |
||||||||||||
Financial Services (Continued) |
||||||||||||
| 22,000 | BlackRock Inc. |
$ | 1,979,991 | $ | 3,154,800 | |||||||
| 1,500,000 | Citigroup Inc.† |
5,168,000 | 5,640,000 | |||||||||
| 18,000 | CME Group Inc. |
6,236,837 | 5,067,900 | |||||||||
| 97,000 | Deutsche Bank AG |
8,289,330 | 5,447,520 | |||||||||
| 470,000 | Discover Financial
Services |
8,054,511 | 6,570,600 | |||||||||
| 100,909 | Fidelity National Financial
Inc., Cl. A |
1,874,684 | 1,310,808 | |||||||||
| 210,000 | Fidelity National
Information
Services Inc. |
3,766,920 | 5,632,200 | |||||||||
| 60,000 | HSBC Holdings plc, ADR |
4,093,300 | 2,735,400 | |||||||||
| 90,000 | Hudson City Bancorp Inc. |
1,409,172 | 1,101,600 | |||||||||
| 125,000 | Invesco Ltd. |
3,131,339 | 2,103,750 | |||||||||
| 485,000 | JPMorgan Chase & Co. |
16,704,832 | 17,755,850 | |||||||||
| 200,000 | Legg Mason Inc. |
4,847,446 | 5,606,000 | |||||||||
| 40,000 | M&T Bank Corp. |
2,557,647 | 3,398,000 | |||||||||
| 78,000 | Moody’s Corp. |
2,827,100 | 1,553,760 | |||||||||
| 110,000 | Morgan Stanley |
3,207,824 | 2,553,100 | |||||||||
| 90,000 | National Australia Bank
Ltd., ADR |
2,148,264 | 1,759,500 | |||||||||
| 180,000 | New York Community
Bancorp Inc. |
3,037,621 | 2,748,600 | |||||||||
| 240,000 | NewAlliance
Bancshares Inc. |
3,442,676 | 2,690,400 | |||||||||
| 200,000 | PNC Financial Services
Group Inc. |
10,426,455 | 11,300,000 | |||||||||
| 220,000 | SLM Corp.† |
4,611,192 | 2,285,800 | |||||||||
| 46,000 | State Street Corp. |
961,661 | 1,555,720 | |||||||||
| 130,000 | T. Rowe Price Group Inc. |
4,538,233 | 5,770,700 | |||||||||
| 525,000 | The Bank of New York
Mellon Corp. |
16,938,137 | 12,962,250 | |||||||||
| 73,000 | The Blackstone Group LP |
1,245,405 | 697,880 | |||||||||
| 290,000 | The Travelers
Companies Inc. |
10,913,064 | 14,282,500 | |||||||||
| 370,000 | Waddell & Reed Financial
Inc., Cl. A |
7,544,611 | 8,095,600 | |||||||||
| 10,000 | Webster Financial Corp. |
40,182 | 179,400 | |||||||||
| 530,000 | Wells Fargo & Co. |
15,506,240 | 13,568,000 | |||||||||
| 19,260 | Willis Group Holdings plc |
556,229 | 578,763 | |||||||||
| 170,000 | Wilmington Trust Corp. |
5,440,624 | 1,885,300 | |||||||||
| 200,161,191 | 185,623,021 | |||||||||||
Food and Beverage — 11.3% |
||||||||||||
| 90,000 | Campbell Soup Co. |
2,793,859 | 3,224,700 | |||||||||
| 350,000 | China Mengniu Dairy
Co. Ltd. |
857,331 | 1,146,156 | |||||||||
| 235,000 | ConAgra Foods Inc. |
5,617,669 | 5,480,200 | |||||||||
| 90,000 | Constellation Brands Inc.,
Cl. A† |
1,175,339 | 1,405,800 | |||||||||
| 300,082 | Danone |
15,096,110 | 16,219,459 | |||||||||
| 1,900,000 | Davide Campari —
Milano SpA |
9,573,232 | 9,398,234 | |||||||||
| 270,000 | Dr. Pepper Snapple
Group Inc. |
6,237,449 | 10,095,300 | |||||||||
| 550,000 | General Mills Inc. |
13,425,593 | 19,536,000 | |||||||||
| 85,000 | H.J. Heinz Co. |
2,971,207 | 3,673,700 | |||||||||
| 220,000 | ITO EN Ltd. |
5,070,878 | 3,384,041 | |||||||||
| 1,000 | Kellogg Co. |
35,550 | 50,300 | |||||||||
| 280,000 | Kikkoman Corp. |
3,555,048 | 2,957,869 | |||||||||
| 750,000 | Kraft Foods Inc., Cl. A |
22,390,116 | 21,000,000 | |||||||||
| 150,000 | Morinaga Milk Industry
Co. Ltd. |
588,860 | 585,308 | |||||||||
| 200,000 | NISSIN FOODS
HOLDINGS CO. LTD. |
6,829,272 | 7,385,625 | |||||||||
| 1,300,000 | Parmalat SpA |
4,070,043 | 3,042,702 | |||||||||
| 339,450 | Parmalat SpA, GDR (b)(c) |
981,615 | 795,841 | |||||||||
| 60,000 | PepsiCo Inc. |
3,735,000 | 3,657,000 | |||||||||
| 74,000 | Pernod-Ricard SA |
6,614,422 | 5,789,620 | |||||||||
| 19,000 | Remy Cointreau SA |
919,900 | 1,018,007 | |||||||||
| 1,400,000 | Sara Lee Corp. |
21,309,797 | 19,740,000 | |||||||||
| 310,000 | The Coca-Cola Co. |
13,818,791 | 15,537,200 | |||||||||
| 345,000 | The Hershey Co. |
14,823,123 | 16,535,850 | |||||||||
| 440,000 | YAKULT HONSHA
Co. Ltd. |
11,809,492 | 12,068,088 | |||||||||
| 174,299,696 | 183,727,000 | |||||||||||
Health Care — 4.8% |
||||||||||||
| 37,000 | Abbott Laboratories |
1,730,226 | 1,730,860 | |||||||||
| 250,000 | Boston Scientific Corp.† |
2,367,204 | 1,450,000 | |||||||||
| 235,000 | Bristol-Myers Squibb Co. |
5,804,179 | 5,860,900 | |||||||||
| 75,000 | Covidien plc |
3,176,821 | 3,013,500 | |||||||||
| 120,000 | Eli Lilly & Co. |
5,866,997 | 4,020,000 | |||||||||
| 50,000 | Johnson & Johnson |
3,244,276 | 2,953,000 | |||||||||
| 70,000 | Mead Johnson
Nutrition Co. |
2,938,339 | 3,508,400 | |||||||||
| 150,000 | Merck & Co. Inc. |
4,970,269 | 5,245,500 | |||||||||
| 266,500 | Millipore Corp.† |
28,132,518 | 28,422,225 | |||||||||
| 112,500 | Owens & Minor Inc. |
2,399,108 | 3,192,750 | |||||||||
| 705,000 | Pfizer Inc. |
13,595,403 | 10,053,300 | |||||||||
| 26,000 | Schiff Nutrition
International Inc. |
145,435 | 185,120 | |||||||||
| 40,000 | St. Jude Medical Inc.† |
1,508,065 | 1,443,600 | |||||||||
| 60,000 | Watson Pharmaceuticals
Inc.† |
2,168,271 | 2,434,200 | |||||||||
| 77,000 | Zimmer Holdings Inc.† |
4,894,910 | 4,161,850 | |||||||||
| 82,942,021 | 77,675,205 | |||||||||||
See accompanying notes to financial statements.
6
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) |
||||||||||||
Hotels and Gaming — 0.2% |
||||||||||||
| 75,000 | Boyd Gaming Corp.† |
$ | 577,827 | $ | 636,750 | |||||||
| 850,000 | Ladbrokes
plc |
7,858,227 | 1,615,419 | |||||||||
| 60,000 | Las Vegas Sands Corp.† |
350,218 | 1,328,400 | |||||||||
| 16,000 | Pinnacle
Entertainment Inc.† |
67,635 | 151,360 | |||||||||
| 8,853,907 | 3,731,929 | |||||||||||
Machinery — 0.5% |
||||||||||||
| 210,000 | CNH Global NV† |
4,740,564 | 4,756,500 | |||||||||
| 70,000 | Deere & Co. |
3,746,042 | 3,897,600 | |||||||||
| 8,486,606 | 8,654,100 | |||||||||||
Manufactured Housing and Recreational Vehicles — 0.0% |
||||||||||||
| 16,000 | Skyline Corp. |
423,697 | 288,160 | |||||||||
Metals and Mining — 0.8% |
||||||||||||
| 16,000 | Agnico-Eagle
Mines Ltd. |
766,400 | 972,480 | |||||||||
| 290,000 | Alcoa Inc. |
6,550,294 | 2,917,400 | |||||||||
| 20,000 | Alliance Holdings GP LP |
461,803 | 703,200 | |||||||||
| 6,000 | Arch Coal Inc. |
93,203 | 118,860 | |||||||||
| 8,000 | BHP Billiton Ltd., ADR |
217,549 | 495,920 | |||||||||
| 125,000 | Freeport-McMoRan
Copper & Gold Inc. |
3,873,850 | 7,391,250 | |||||||||
| 25,000 | Peabody Energy Corp. |
404,351 | 978,250 | |||||||||
| 12,367,450 | 13,577,360 | |||||||||||
Paper and Forest Products — 0.6% |
||||||||||||
| 400,000 | International Paper Co. |
12,286,818 | 9,052,000 | |||||||||
Publishing — 0.1% |
||||||||||||
| 850,000 | Il Sole 24 Ore† |
7,042,255 | 1,455,195 | |||||||||
Real Estate — 0.0% |
||||||||||||
| 18,000 | Brookfield Asset
Management Inc., Cl. A |
186,196 | 407,160 | |||||||||
Retail — 2.1% |
||||||||||||
| 220,000 | CVS Caremark Corp. |
7,446,352 | 6,450,400 | |||||||||
| 142,000 | Ingles Markets Inc., Cl. A |
1,615,209 | 2,137,100 | |||||||||
| 105,000 | Macy’s Inc. |
1,203,699 | 1,879,500 | |||||||||
| 400,000 | Safeway Inc. |
8,456,277 | 7,864,000 | |||||||||
| 300,000 | Sally Beauty Holdings Inc.† |
3,712,676 | 2,460,000 | |||||||||
| 4,000 | SUPERVALU Inc. |
64,080 | 43,360 | |||||||||
| 108,000 | The Great Atlantic &
Pacific Tea Co. Inc.† |
1,466,490 | 421,200 | |||||||||
| 35,000 | Wal-Mart Stores Inc. |
1,729,286 | 1,682,450 | |||||||||
| 330,000 | Walgreen Co. |
12,470,820 | 8,811,000 | |||||||||
| 75,000 | Whole Foods Market Inc.† |
2,367,352 | 2,701,500 | |||||||||
| 40,532,241 | 34,450,510 | |||||||||||
Specialty Chemicals — 1.2% |
||||||||||||
| 2,000 | Airgas Inc. |
120,824 | 124,400 | |||||||||
| 5,000 | Arkema, ADR |
269,656 | 175,300 | |||||||||
| 100,000 | Ashland Inc. |
3,658,864 | 4,642,000 | |||||||||
| 158,000 | E. I. du Pont de
Nemours and Co. |
6,808,601 | 5,465,220 | |||||||||
| 390,000 | Ferro Corp.† |
4,186,048 | 2,874,300 | |||||||||
| 100,000 | Olin Corp. |
1,826,860 | 1,809,000 | |||||||||
| 195,000 | The Dow Chemical Co. |
7,734,300 | 4,625,400 | |||||||||
| 24,605,153 | 19,715,620 | |||||||||||
Telecommunications — 5.8% |
||||||||||||
| 610,000 | AT&T Inc. |
16,653,139 | 14,755,900 | |||||||||
| 300,000 | BCE Inc. |
7,341,781 | 8,781,000 | |||||||||
| 33,000 | Belgacom SA |
1,028,445 | 1,043,760 | |||||||||
| 45,000 | Bell Aliant Regional
Communications
Income Fund (c)(d) |
1,219,425 | 1,074,961 | |||||||||
| 15,000 | BT Group plc, ADR |
464,724 | 288,150 | |||||||||
| 32,000 | CenturyLink Inc. |
1,146,892 | 1,065,920 | |||||||||
| 720,000 | Deutsche Telekom AG, ADR |
12,905,316 | 8,402,400 | |||||||||
| 55,000 | France Telecom SA, ADR |
1,338,443 | 952,050 | |||||||||
| 30,000 | Hellenic Telecommunications
Organization SA |
577,510 | 227,451 | |||||||||
| 219,800 | Hellenic Telecommunications
Organization SA, ADR |
1,748,090 | 822,052 | |||||||||
| 215,000 | Portugal Telecom SGPS SA |
2,567,543 | 2,150,631 | |||||||||
| 2,250,000 | Sprint Nextel Corp.† |
18,142,514 | 9,540,000 | |||||||||
| 80,000 | Telecom Italia SpA, ADR |
1,971,002 | 880,800 | |||||||||
| 15,000 | Telefonica SA, ADR |
640,361 | 832,950 | |||||||||
| 165,000 | Telefonos de Mexico SAB
de CV, Cl. L, ADR |
1,589,027 | 2,328,150 | |||||||||
| 110,000 | Telekom Austria AG |
1,691,571 | 1,228,783 | |||||||||
| 38,000 | Telephone & Data
Systems Inc. |
1,230,970 | 1,154,820 | |||||||||
| 100,000 | Telephone & Data
Systems Inc., Special |
3,548,843 | 2,654,000 | |||||||||
| 125,000 | Telstra Corp. Ltd., ADR |
2,293,602 | 1,711,250 | |||||||||
| 76,100 | TELUS Corp., Non-Voting |
1,574,712 | 2,754,820 | |||||||||
| 1,000,000 | Verizon
Communications Inc. |
36,248,381 | 28,020,000 | |||||||||
| 40,000 | VimpelCom Ltd., ADR† |
230,241 | 647,200 | |||||||||
| 175,000 | Vodafone Group plc, ADR |
4,695,005 | 3,617,250 | |||||||||
| 120,847,537 | 94,934,298 | |||||||||||
Transportation — 0.5% |
||||||||||||
| 250,000 | GATX Corp. |
7,479,104 | 6,670,000 | |||||||||
| 27,000 | Kansas City Southern† |
453,321 | 981,450 | |||||||||
| 4,000 | Teekay Corp. |
155,932 | 104,680 | |||||||||
| 8,088,357 | 7,756,130 | |||||||||||
See accompanying notes to financial statements.
7
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Market | ||||||||||||
| Shares | Cost | Value | ||||||||||
COMMON STOCKS (Continued) |
||||||||||||
Wireless Communications — 0.3% |
||||||||||||
| 110,000 | United States
Cellular Corp.† |
$ | 4,910,278 | $ | 4,526,500 | |||||||
TOTAL COMMON STOCKS |
1,518,735,768 | 1,485,093,516 | ||||||||||
CONVERTIBLE PREFERRED STOCKS — 1.1% |
||||||||||||
Automotive — 0.1% |
||||||||||||
| 30,000 | Ford Motor Co. Capital Trust II,
6.500% Cv. Pfd. |
1,280,906 | 1,324,500 | |||||||||
Broadcasting — 0.0% |
||||||||||||
| 15,266 | Emmis Communications Corp.,
6.250% Cv. Pfd.,
Ser. A† |
572,710 | 335,699 | |||||||||
Building and Construction — 0.0% |
||||||||||||
| 200 | Fleetwood Capital Trust,
6.000% Cv. Pfd.† |
6,210 | 100 | |||||||||
Energy and Utilities — 0.3% |
||||||||||||
| 129,000 | El Paso Energy Capital Trust I,
4.750% Cv. Pfd. |
4,649,004 | 4,687,860 | |||||||||
Financial Services — 0.2% |
||||||||||||
| 1,500 | Doral Financial Corp.,
4.750% Cv. Pfd. |
207,335 | 186,000 | |||||||||
| 80,000 | Newell Financial Trust I,
5.250% Cv. Pfd. |
3,769,250 | 2,820,000 | |||||||||
| 3,976,585 | 3,006,000 | |||||||||||
Telecommunications — 0.5% |
||||||||||||
| 55,000 | Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B |
2,254,718 | 2,090,000 | |||||||||
| 103,000 | Crown Castle International Corp.,
6.250% Cv. Pfd. |
4,763,875 | 5,793,750 | |||||||||
| 7,018,593 | 7,883,750 | |||||||||||
Transportation — 0.0% |
||||||||||||
| 1,500 | GATX Corp., $2.50 Cv. Pfd.,
Ser. A (d) |
199,475 | 200,100 | |||||||||
TOTAL CONVERTIBLE |
||||||||||||
PREFERRED STOCKS |
17,703,483 | 17,438,009 | ||||||||||
RIGHTS — 0.0% |
||||||||||||
Health Care — 0.0% |
||||||||||||
| 6,000 | Fresenius Kabi Pharmaceuticals
Holding Inc., CVR,
expire 12/31/10† |
0 | 786 | |||||||||
WARRANTS — 0.0% |
||||||||||||
Food and Beverage — 0.0% |
||||||||||||
| 650 | Parmalat SpA, GDR,
expire
12/31/15† (b)(c)(d) |
0 | 435 | |||||||||
| Principal | ||||||||||||
| Amount | ||||||||||||
CONVERTIBLE CORPORATE BONDS — 1.7% |
||||||||||||
Aerospace — 0.1% |
||||||||||||
| $ | 1,500,000 | GenCorp Inc., Sub. Deb. Cv.,
4.063%, 12/31/39 (c) |
1,353,018 | 1,248,750 | ||||||||
Automotive: Parts and Accessories — 0.0% |
||||||||||||
| 500,000 | Standard Motor Products Inc.,
Sub. Deb. Cv.,
15.000%, 04/15/11 |
485,351 | 490,365 | |||||||||
Broadcasting — 0.6% |
||||||||||||
| 10,000,000 | Sinclair Broadcast Group Inc.,
Sub. Deb. Cv.,
6.000%, 09/15/12 |
9,020,029 | 9,325,000 | |||||||||
Computer Hardware — 0.2% |
||||||||||||
| 3,000,000 | SanDisk Corp., Cv.,
1.000%, 05/15/13 |
2,537,732 | 2,681,250 | |||||||||
Diversified Industrial — 0.5% |
||||||||||||
| 8,800,000 | Griffon Corp., Sub. Deb. Cv.,
4.000%, 01/15/17 (c) |
8,800,000 | 8,844,000 | |||||||||
Financial Services — 0.0% |
||||||||||||
| 200,000 | Janus Capital Group Inc., Cv.,
3.250%, 07/15/14 |
200,000 | 201,500 | |||||||||
Real Estate — 0.0% |
||||||||||||
| 450,000 | Palm Harbor Homes Inc., Cv.,
3.250%, 05/15/24 |
423,109 | 330,750 | |||||||||
Retail — 0.3% |
||||||||||||
| 5,300,000 | The Great Atlantic & Pacific
Tea Co. Inc., Cv.,
5.125%, 06/15/11 |
5,267,685 | 4,995,250 | |||||||||
TOTAL CONVERTIBLE
CORPORATE BONDS |
28,086,924 | 28,116,865 | ||||||||||
U.S. GOVERNMENT OBLIGATIONS — 5.9% |
||||||||||||
U.S. Treasury Bills — 5.4% |
||||||||||||
| 86,973,000 | U.S. Treasury Bills,
0.051% to 0.463%††,
07/01/10 to 12/16/10 |
86,945,151 | 86,943,299 | |||||||||
See accompanying notes to financial statements.
8
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
June 30, 2010 (Unaudited)
| Principal | Market | |||||||||||
| Amount | Cost | Value | ||||||||||
U.S. Treasury Cash Management Bills — 0.5% |
||||||||||||
| $ | 8,620,000 | U.S. Treasury Cash Management Bill,
0.132%††, 07/15/10 |
$ | 8,619,557 | $ | 8,619,557 | ||||||
U.S. Treasury Notes — 0.0% |
||||||||||||
| 595,000 | U.S. Treasury Note,
4.125%, 08/15/10 |
597,867 | 597,867 | |||||||||
TOTAL U.S. GOVERNMENT
OBLIGATIONS |
96,162,575 | 96,160,723 | ||||||||||
| TOTAL INVESTMENTS — 100.0% | $ | 1,660,688,750 | 1,626,810,334 | |||||||||
| Other Assets and Liabilities (Net) | 578,341 | |||||||||||
| PREFERRED STOCK (5,603,095 preferred shares outstanding) |
(459,257,875 | ) | ||||||||||
| NET ASSETS — COMMON SHARES (83,170,137 common shares outstanding) |
$ | 1,168,130,800 | ||||||||||
| NET ASSET VALUE PER COMMON SHARE ($1,168,130,800 ÷ 83,170,137 shares outstanding) |
$ | 14.05 | ||||||||||
| (a) | Security considered an affiliated holding because the Fund owns at least 5% of its outstanding shares. | |
| (b) | At June 30, 2010, the Fund held investments in restricted and illiquid securities amounting to $796,276 or 0.05% of total investments, which were valued under methods approved by the Board of Trustees as follows: |
| 06/30/10 | ||||||||||||||||
| Acquisition | Acquisition | Acquisition | Carrying Value | |||||||||||||
| Shares | Issuer | Date | Cost | Per Unit | ||||||||||||
| 339,450 | Parmalat SpA, GDR |
12/02/03 | $ | 981,615 | $ | 2.3445 | ||||||||||
| 650 | Parmalat SpA, GDR,
Warrants expire
12/31/15 |
11/09/05 | — | 0.6692 | ||||||||||||
| (c) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2010, the market value of Rule 144A securities amounted to $11,963,987 or 0.74% of total investments. Except as noted in (b) these securities are liquid. | |
| (d) | Security fair valued under procedures established by the Board of Trustees. The procedures may include reviewing available financial information about the company and reviewing the valuation of comparable securities and other factors on a regular basis. At June 30, 2010, the market value of fair valued securities amounted to $1,275,496 or 0.08% of total investments. | |
| † | Non-income producing security. | |
| †† | Represents annualized yield at date of purchase. | |
| ADR | American Depositary Receipt | |
| CVR | Contingent Value Right | |
| GDR | Global Depositary Receipt |
| % of | ||||||||
| Market | Market | |||||||
| Geographic Diversification | Value | Value | ||||||
North America |
81.2 | % | $ | 1,321,104,356 | ||||
Europe |
14.3 | 231,734,447 | ||||||
Japan |
3.7 | 60,228,575 | ||||||
Asia/Pacific |
0.4 | 7,085,466 | ||||||
Latin America |
0.4 | 6,657,490 | ||||||
Total Investments |
100.0 | % | $ | 1,626,810,334 | ||||
See accompanying notes to financial statements.
9
THE GABELLI DIVIDEND & INCOME TRUST
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2010 (Unaudited)
June 30, 2010 (Unaudited)
Assets: |
||||
Investments, at value (cost $1,659,651,618) |
$ | 1,626,718,834 | ||
Investments in affiliates, at value (cost $1,037,132) |
91,500 | |||
Foreign currency, at value (cost $2,781) |
2,777 | |||
Cash |
4,448 | |||
Receivable for investments sold |
1,365,952 | |||
Dividends and interest receivable |
3,574,099 | |||
Deferred offering expense |
141,715 | |||
Prepaid expense |
22,732 | |||
Total Assets |
1,631,922,057 | |||
Liabilities: |
||||
Payable for investments purchased |
928,644 | |||
Distributions payable |
144,644 | |||
Payable for investment advisory fees |
1,004,043 | |||
Payable for payroll expenses |
36,326 | |||
Payable for accounting fees |
7,500 | |||
Payable for auction agent fees |
1,961,333 | |||
Payable for shareholder communications expenses |
292,707 | |||
Other accrued expenses |
158,185 | |||
Total Liabilities |
4,533,382 | |||
Preferred Shares: |
||||
Series A Cumulative Preferred Shares (5.875%, $25
liquidation value, $0.001 par value, 3,200,000 shares
authorized with 3,048,019 shares issued
and outstanding) |
76,200,475 | |||
Series B Cumulative Preferred Shares (Auction Market,
$25,000 liquidation value, $0.001 par value, 4,000
shares authorized with 3,600 shares issued
and outstanding) |
90,000,000 | |||
Series C Cumulative Preferred Shares (Auction Market,
$25,000 liquidation value, $0.001 par value, 4,800
shares authorized with 4,320 shares issued
and outstanding) |
108,000,000 | |||
Series D Cumulative Preferred Shares (6.000%, $25
liquidation value, $0.001 par value, 2,600,000 shares
authorized with 2,542,296 shares issued
and outstanding) |
63,557,400 | |||
Series E Cumulative Preferred Shares (Auction Rate,
$25,000 liquidation value, $0.001 par value, 5,400
shares authorized with 4,860 shares issued
and outstanding) |
121,500,000 | |||
Total Preferred Shares |
459,257,875 | |||
Net Assets Attributable to Common Shareholders |
$ | 1,168,130,800 | ||
Net Assets Attributable to Common Shareholders Consist of: |
||||
Paid-in capital |
$ | 1,363,683,850 | ||
Accumulated net investment income |
5,243,426 | |||
Accumulated net realized loss on investments, swap
contracts, and foreign currency transactions |
(166,874,339 | ) | ||
Net unrealized depreciation on investments |
(33,878,416 | ) | ||
Net unrealized depreciation on foreign
currency translations |
(43,721 | ) | ||
Net Assets |
$ | 1,168,130,800 | ||
Net Asset Value per Common Share: |
||||
($1,168,130,800 ÷ 83,170,137 shares outstanding, at $0.001
par value; unlimited number of shares authorized) |
$ | 14.05 | ||
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2010 (Unaudited)
For the Six Months Ended June 30, 2010 (Unaudited)
Investment Income: |
||||
Dividends (net of foreign taxes of $861,361) |
$ | 25,012,068 | ||
Interest |
921,100 | |||
Total Investment Income |
25,933,168 | |||
Expenses: |
||||
Investment advisory fees |
8,665,872 | |||
Auction agent fees |
391,849 | |||
Shareholder communications expenses |
225,816 | |||
Custodian fees |
129,245 | |||
Payroll expenses |
116,025 | |||
Trustees’ fees |
91,523 | |||
Legal and audit fees |
65,277 | |||
Accounting fees |
22,500 | |||
Shareholder services fees |
19,162 | |||
Interest expense |
64 | |||
Miscellaneous expenses |
162,781 | |||
Total Expenses |
9,890,114 | |||
Less: |
||||
Advisory fee reduction |
(2,277,416 | ) | ||
Advisory fee reduction on unsupervised assets (See Note 3) |
(3,827 | ) | ||
Custodian fee credits |
(189 | ) | ||
Total Reductions and Credits |
(2,281,432 | ) | ||
Net Expenses |
7,608,682 | |||
Net Investment Income |
18,324,486 | |||
Net Realized and Unrealized Gain/(Loss) on
Investments, Swap Contracts,
and Foreign Currency: |
||||
Net realized loss on investments — unaffiliated |
(2,602,928 | ) | ||
Net realized loss on investments — affiliated |
(331,148 | ) | ||
Net realized loss on swap contracts |
(1,819,014 | ) | ||
Net realized loss on foreign currency transactions |
(60,592 | ) | ||
Net realized loss on investments, swap contracts,
and foreign currency transactions |
(4,813,682 | ) | ||
Net change in unrealized appreciation/depreciation: |
||||
on investments |
(106,690,591 | ) | ||
on swap contracts |
1,864,569 | |||
on foreign currency translations |
(45,101 | ) | ||
Net change in unrealized appreciation/depreciation on
investments, swap contracts, and foreign
currency translations |
(104,871,123 | ) | ||
Net Realized and Unrealized Gain/(Loss) on
Investments, Swap Contracts,
and Foreign Currency |
(109,684,805 | ) | ||
Net Decrease in Net Assets Resulting
from Operations |
(91,360,319 | ) | ||
Total Distributions to Preferred Shareholders |
(6,687,915 | ) | ||
Net Decrease in Net Assets Attributable to Common
Shareholders Resulting from Operations |
$ | (98,048,234 | ) | |
See accompanying notes to financial statements.
10
THE GABELLI DIVIDEND & INCOME TRUST
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO COMMON SHAREHOLDERS
| Six Months Ended | ||||||||
| June 30, 2010 | Year Ended | |||||||
| (Unaudited) | December 31, 2009 | |||||||
Operations: |
||||||||
Net investment income |
$ | 18,324,486 | $ | 34,009,983 | ||||
Net realized loss on investments, swap contracts, and foreign
currency transactions |
(4,813,682 | ) | (119,259,851 | ) | ||||
Net change in unrealized appreciation/depreciation on
investments, swap contracts,
and foreign currency translations |
(104,871,123 | ) | 422,770,032 | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
(91,360,319 | ) | 337,520,164 | |||||
Distributions to Preferred Shareholders: |
||||||||
Net investment income |
(6,687,915 | )* | (13,549,022 | ) | ||||
Total Distributions to Preferred Shareholders |
(6,687,915 | ) | (13,549,022 | ) | ||||
Net Increase/(Decrease) in Net Assets Attributable to Common
Shareholders
Resulting from Operations |
(98,048,234 | ) | 323,971,142 | |||||
Distributions to Common Shareholders: |
||||||||
Net investment income |
(8,398,359 | )* | (17,201,564 | ) | ||||
Return of capital |
(21,595,780 | )* | (65,457,086 | ) | ||||
Total Distributions to Common Shareholders |
(29,994,139 | ) | (82,658,650 | ) | ||||
Fund Share Transactions: |
||||||||
Net decrease from repurchase of common shares |
(4,095,098 | ) | (635,911 | ) | ||||
Net increase in net assets from repurchase of preferred shares |
— | 315,833 | ||||||
Net Decrease in Net Assets from Fund Share Transactions |
(4,095,098 | ) | (320,078 | ) | ||||
Net Increase/(Decrease) in Net Assets Attributable to Common
Shareholders |
(132,137,471 | ) | 240,992,414 | |||||
Net Assets Attributable to Common Shareholders: |
||||||||
Beginning of period |
1,300,268,271 | 1,059,275,857 | ||||||
End of period (including undistributed net investment income of
$5,243,426 and $2,005,214,
respectively) |
$ | 1,168,130,800 | $ | 1,300,268,271 | ||||
| * | Based on year to date book income. Amounts are subject to change and recharacterization at year end. |
See accompanying notes to financial statements.
11
THE GABELLI DIVIDEND & INCOME TRUST
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
| Selected data for a share of | Six Months Ended | |||||||||||||||||||||||
| beneficial interest outstanding | June 30, 2010 | Year Ended December 31, | ||||||||||||||||||||||
| throughout each period: | (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
Operating Performance: |
||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 15.58 | $ | 12.68 | $ | 23.57 | $ | 23.65 | $ | 20.62 | $ | 20.12 | ||||||||||||
Net investment income |
0.22 | 0.41 | 0.55 | 0.53 | 0.87 | 0.55 | ||||||||||||||||||
Net realized and unrealized gain/(loss) on investments,
swap contracts, and foreign currency transactions |
(1.32 | ) | 3.64 | (9.92 | ) | 1.37 | 4.00 | 1.33 | ||||||||||||||||
Total from investment operations |
(1.10 | ) | 4.05 | (9.37 | ) | 1.90 | 4.87 | 1.88 | ||||||||||||||||
Distributions to Preferred Shareholders: (a) |
||||||||||||||||||||||||
Net investment income |
(0.08 | )* | (0.16 | ) | (0.27 | ) | (0.10 | ) | (0.12 | ) | (0.06 | ) | ||||||||||||
Net realized gain |
— | — | (0.00 | )(g) | (0.23 | ) | (0.19 | ) | (0.10 | ) | ||||||||||||||
Total distributions to preferred shareholders |
(0.08 | ) | (0.16 | ) | (0.27 | ) | (0.33 | ) | (0.31 | ) | (0.16 | ) | ||||||||||||
Net Increase/(Decrease) in Net Assets Attributable to
Common Shareholders Resulting from Operations |
(1.18 | ) | 3.89 | (9.64 | ) | 1.57 | 4.56 | 1.72 | ||||||||||||||||
Distributions to Common Shareholders: |
||||||||||||||||||||||||
Net investment income |
(0.10 | )* | (0.21 | ) | (0.29 | ) | (0.51 | ) | (0.61 | ) | (0.48 | ) | ||||||||||||
Net realized gain on investments |
— | — | (0.00 | )(g) | (1.15 | ) | (0.93 | ) | (0.72 | ) | ||||||||||||||
Return of capital |
(0.26 | )* | (0.78 | ) | (0.99 | ) | — | — | — | |||||||||||||||
Total distributions to common shareholders |
(0.36 | ) | (0.99 | ) | (1.28 | ) | (1.66 | ) | (1.54 | ) | (1.20 | ) | ||||||||||||
Fund Share Transactions: |
||||||||||||||||||||||||
Increase in net assets value from repurchase of
common shares |
0.01 | 0.00 | (g) | 0.01 | 0.01 | 0.01 | 0.02 | |||||||||||||||||
Increase in net assets value from repurchase of
preferred shares |
— | 0.00 | (g) | 0.02 | — | — | — | |||||||||||||||||
Offering costs for preferred shares charged
to
paid-in capital |
— | — | — | — | (0.00 | )(g) | (0.04 | ) | ||||||||||||||||
Total from fund share transactions |
0.01 | 0.00 | (g) | 0.03 | 0.01 | 0.01 | (0.02 | ) | ||||||||||||||||
Net Asset Value Attributable to Common
Shareholders, End of Period |
$ | 14.05 | $ | 15.58 | $ | 12.68 | $ | 23.57 | $ | 23.65 | $ | 20.62 | ||||||||||||
NAV total return † |
(7.32 | )% | 35.49 | % | (41.27 | )% | 7.75 | % | 24.09 | % | 9.47 | % | ||||||||||||
Market value, end of period |
$ | 12.00 | $ | 13.11 | $ | 10.30 | $ | 20.68 | $ | 21.47 | $ | 17.62 | ||||||||||||
Investment total return †† |
(5.93 | )% | 40.35 | % | (45.63 | )% | 4.14 | % | 31.82 | % | 4.85 | % | ||||||||||||
See accompanying notes to financial statements.
12
THE GABELLI DIVIDEND & INCOME TRUST
FINANCIAL HIGHLIGHTS (Continued)
FINANCIAL HIGHLIGHTS (Continued)
| Selected data for a share of | Six Months Ended | ||||||||||||||||||||||||
| beneficial interest outstanding | June 30, 2010 | Year Ended December 31, | |||||||||||||||||||||||
| throughout each period: | (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Ratios and Supplemental Data: |
|||||||||||||||||||||||||
Net assets including liquidation value of preferred shares,
end of period (in 000’s) |
$ | 1,627,389 | $ | 1,759,526 | $ | 1,521,400 | $ | 2,475,831 | $ | 2,486,081 | $ | 2,238,155 | |||||||||||||
Net assets attributable to common shares,
end of period (in 000’s) |
$ | 1,168,131 | $ | 1,300,268 | $ | 1,059,276 | $ | 1,975,831 | $ | 1,986,081 | $ | 1,738,155 | |||||||||||||
Ratio of net investment income to average net assets
attributable to common shares before preferred
share distributions |
2.85 | %(f) | 3.18 | % | 2.94 | % | 2.17 | % | 3.91 | % | 2.75 | % | |||||||||||||
Ratio of operating expenses to average net assets
attributable to common shares before fees waived |
1.54 | %(f) | 1.66 | % | 1.48 | % | — | — | — | ||||||||||||||||
Ratio of operating expenses to average net assets
attributable to common shares net of advisory
fee reduction, if any (b) |
1.18 | %(f) | 1.66 | % | 1.17 | % | 1.37 | % | 1.41 | % | 1.33 | % | |||||||||||||
Ratio of operating expenses to average net assets including
liquidation value of preferred shares before fees waived |
1.14 | %(f) | 1.16 | % | 1.13 | % | — | — | — | ||||||||||||||||
Ratio of operating expenses to average net assets including
liquidation value of preferred shares net of advisory
fee reduction, if any (b) |
0.87 | %(f) | 1.16 | % | 0.89 | % | 1.10 | % | 1.11 | % | 1.12 | % | |||||||||||||
Portfolio turnover rate ††† |
7.1 | % | 13.3 | % | 32.0 | % | 33.8 | % | 28.8 | % | 25.6 | % | |||||||||||||
5.875% Series A Cumulative Preferred Shares |
|||||||||||||||||||||||||
Liquidation value, end of period (in 000’s) |
$ | 76,201 | $ | 76,201 | $ | 78,211 | $ | 80,000 | $ | 80,000 | $ | 80,000 | |||||||||||||
Total shares outstanding (in 000’s) |
3,048 | 3,048 | 3,128 | 3,200 | 3,200 | 3,200 | |||||||||||||||||||
Liquidation preference per share |
$ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||||||||
Average market value (c) |
$ | 24.74 | $ | 23.34 | $ | 22.25 | $ | 23.52 | $ | 23.86 | $ | 24.82 | |||||||||||||
Asset coverage per share |
$ | 88.59 | $ | 95.78 | $ | 82.30 | $ | 123.79 | $ | 124.30 | $ | 111.91 | |||||||||||||
Series B Auction Market Cumulative Preferred Shares |
|||||||||||||||||||||||||
Liquidation value, end of period (in 000’s) |
$ | 90,000 | $ | 90,000 | $ | 90,000 | $ | 100,000 | $ | 100,000 | $ | 100,000 | |||||||||||||
Total shares outstanding (in 000’s) |
4 | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||
Liquidation preference per share |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | |||||||||||||
Average market value (d) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | |||||||||||||
Asset coverage per share |
$ | 88,588 | $ | 95,781 | $ | 82,305 | $ | 123,792 | $ | 124,304 | $ | 111,908 | |||||||||||||
Series C Auction Market Cumulative Preferred Shares |
|||||||||||||||||||||||||
Liquidation value, end of period (in 000’s) |
$ | 108,000 | $ | 108,000 | $ | 108,000 | $ | 120,000 | $ | 120,000 | $ | 120,000 | |||||||||||||
Total shares outstanding (in 000’s) |
4 | 4 | 4 | 5 | 5 | 5 | |||||||||||||||||||
Liquidation preference per share |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | |||||||||||||
Average market value (d) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | |||||||||||||
Asset coverage per share |
$ | 88,588 | $ | 95,781 | $ | 82,305 | $ | 123,792 | $ | 124,304 | $ | 111,908 | |||||||||||||
6.000% Series D Cumulative Preferred Shares |
|||||||||||||||||||||||||
Liquidation value, end of period (in 000’s) |
$ | 63,557 | $ | 63,557 | $ | 64,413 | $ | 65,000 | $ | 65,000 | $ | 65,000 | |||||||||||||
Total shares outstanding (in 000’s) |
2,542 | 2,542 | 2,577 | 2,600 | 2,600 | 2,600 | |||||||||||||||||||
Liquidation preference per share |
$ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||||||||
Average market value (c) |
$ | 25.18 | $ | 24.44 | $ | 23.99 | $ | 24.41 | $ | 24.37 | $ | 24.72 | |||||||||||||
Asset coverage per share |
$ | 88.59 | $ | 95.78 | $ | 82.30 | $ | 123.79 | $ | 124.30 | $ | 111.91 | |||||||||||||
Series E Auction Rate Cumulative Preferred Shares |
|||||||||||||||||||||||||
Liquidation value, end of period (in 000’s) |
$ | 121,500 | $ | 121,500 | $ | 121,500 | $ | 135,000 | $ | 135,000 | $ | 135,000 | |||||||||||||
Total shares outstanding (in 000’s) |
5 | 5 | 5 | 5 | 5 | 5 | |||||||||||||||||||
Liquidation preference per share |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | |||||||||||||
Average market value (d) |
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | |||||||||||||
Asset coverage per share |
$ | 88,588 | $ | 95,781 | $ | 82,305 | $ | 123,792 | $ | 124,304 | $ | 111,908 | |||||||||||||
Asset Coverage (e) |
354 | % | 383 | % | 329 | % | 495 | % | 497 | % | 448 | % | |||||||||||||
| † | Based on net asset value per share, adjusted for reinvestment of distributions at prices obtained under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized. | |
| †† | Based on market value per share, adjusted for reinvestment of distributions at prices obtained under the Fund’s dividend reinvestment plan. Total return for a period of less than one year is not annualized. | |
| ††† | Effective in 2008, a change in accounting policy was adopted with regard to the calculation of the portfolio turnover rate to include cash proceeds due to mergers. Had this policy been adopted retroactively, the portfolio turnover rate for the years ended December 31, 2007, 2006, and 2005, would have been 58.0%, 30.8%, and 39.5%, respectively. | |
| * | Based on year to date book income. Amounts are subject to change and recharacterization at year end. | |
| (a) | Calculated based upon average common shares outstanding on the record dates throughout the period. | |
| (b) | The ratios include a reduction of expenses for custodian fee credits on cash balances maintained with the custodian (“Custodian Fee Credits”). Historically, the ratios reflected operating expenses before the reduction for Custodian Fee Credits. If the ratios did not reflect a reduction for Custodian Fee Credits, for the year ended December 31, 2007, the ratios of operating expenses to average net assets attributable to common shares net of fee reduction, would have been 1.38% and the ratios of operating expenses to average net assets including liquidation value of preferred shares net of fee reduction would have been 1.11%. For the six months ended June 30, 2010 and the years ended December 31, 2009, 2008, 2006, and 2005, the effect of Custodian Fee Credits was minimal. | |
| (c) | Based on weekly prices. | |
| (d) | Based on weekly auction prices. Since February 2008, the weekly auctions have failed. Holders that have submitted orders have not been able to sell any or all of their shares in the auctions. | |
| (e) | Asset coverage is calculated by combining all series of preferred shares. | |
| (f) | Annualized. | |
| (g) | Amount represents less than $0.005 per share. |
See accompanying notes to financial statements.
13
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Organization. The Gabelli Dividend & Income Trust (the “Fund”) is a non-diversified closed-end
management investment company organized as a Delaware statutory trust on November 18, 2003 and
registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Investment
operations commenced on November 28, 2003.
The Fund’s investment objective is to provide a high level of total return on its assets with
an emphasis on dividends and income. The Fund will attempt to achieve its investment objective by
investing, under normal market conditions, at least 80% of its assets in dividend paying securities
(such as common and preferred stock) or other income producing securities (such as fixed income
debt securities and securities that are convertible into equity securities).
2. Significant Accounting Policies. The Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) has become the exclusive reference of authoritative United States of
America (“U.S.”) generally accepted accounting principles (“GAAP”) recognized by the FASB to be
applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of
federal laws are also sources of authoritative GAAP for SEC registrants. The ASC has superseded all
existing non-SEC accounting and reporting standards. The Fund’s financial statements are prepared
in accordance with GAAP, which may require the use of management estimates and assumptions. Actual
results could differ from those estimates. The following is a summary of significant accounting
policies followed by the Fund in the preparation of its financial statements.
Security Valuation. Portfolio securities listed or traded on a nationally recognized
securities exchange or traded in the U.S. over-the-counter market for which market quotations are
readily available are valued at the last quoted sale price or a market’s official closing price as
of the close of business on the day the securities are being valued. If there were no sales that
day, the security is valued at the average of the closing bid and asked prices or, if there were no
asked prices quoted on that day, then the security is valued at the closing bid price on that day.
If no bid or asked prices are quoted on such day, the security is valued at the most recently
available price or, if the Board of Trustees (the “Board”) so determines, by such other method as
the Board shall determine in good faith to reflect its fair market value. Portfolio securities
traded on more than one national securities exchange or market are valued according to the broadest
and most representative market, as determined by Gabelli Funds, LLC (the “Adviser’’).
Portfolio securities primarily traded on a foreign market are generally valued at the
preceding closing values of such securities on the relevant market, but may be fair valued pursuant
to procedures established by the Board if market conditions change significantly after the close of
the foreign market but prior to the close of business on the day the securities are being valued.
Debt instruments with remaining maturities of sixty days or less that are not credit impaired are
valued at amortized cost, unless the Board determines such amount does not reflect the securities’
fair value, in which case these securities will be fair valued as determined by the Board. Debt
instruments having a maturity greater than sixty days for which market quotations are readily
available are valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price. U.S. government
obligations with maturities greater than sixty days are normally valued using a model that
incorporates market observable data such as reported sales of similar securities, broker quotes,
yields, bids, offers, and reference data. Certain securities are valued principally using dealer
quotations. Futures contracts are valued at the closing settlement price of the exchange or board
of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are fair valued as
determined by the Board. Fair valuation methodologies and procedures may include, but are not
limited to: analysis and review of available financial and non-financial information about the
company; comparisons with the valuation and changes in valuation of similar securities, including a
comparison of foreign securities with the equivalent U.S. dollar value ADR securities at the close
of the U.S. exchange; and evaluation of any other information that could be indicative of the value
of the security.
14
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The inputs and valuation techniques used to measure fair value of the Fund’s investments are
summarized into three levels as described in the hierarchy below:
| • | Level 1 — quoted prices in active markets for identical securities; | ||
| • | Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and | ||
| • | Level 3 — significant unobservable inputs (including the Fund’s determinations as to the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the
risk associated with investing in those securities. The summary of the Fund’s investments in
securities and other financial instruments by inputs used to value the Fund’s investments as of
June 30, 2010 is as follows:
| Valuation Inputs | ||||||||||||
| Level 1 | Level 2 | Total | ||||||||||
| Quoted | Other Significant | Market Value | ||||||||||
| Prices | Observable Inputs | at 6/30/10 | ||||||||||
INVESTMENTS IN SECURITIES: |
||||||||||||
ASSETS (Market Value): |
||||||||||||
Common Stocks: |
||||||||||||
Aerospace |
$ | 31,426,663 | $ | 268,938 | $ | 31,695,601 | ||||||
Food and Beverage |
182,931,159 | 795,841 | 183,727,000 | |||||||||
Telecommunications |
93,859,337 | 1,074,961 | 94,934,298 | |||||||||
Other Industries (a) |
1,174,736,617 | — | 1,174,736,617 | |||||||||
Total Common Stocks |
1,482,953,776 | 2,139,740 | 1,485,093,516 | |||||||||
Convertible Preferred Stocks: |
||||||||||||
Transportation |
— | 200,100 | 200,100 | |||||||||
Other Industries (a) |
17,237,909 | — | 17,237,909 | |||||||||
Total Convertible Preferred Stocks |
17,237,909 | 200,100 | 17,438,009 | |||||||||
Rights (a) |
786 | — | 786 | |||||||||
Warrants (a) |
— | 435 | 435 | |||||||||
Convertible Corporate Bonds |
— | 28,116,865 | 28,116,865 | |||||||||
U.S. Government Obligations |
— | 96,160,723 | 96,160,723 | |||||||||
TOTAL INVESTMENTS IN SECURITIES — ASSETS |
$ | 1,500,192,471 | $ | 126,617,863 | $ | 1,626,810,334 | ||||||
| (a) | Please refer to the Schedule of Investments for the industry classifications of these portfolio holdings. |
The Fund did not have significant transfers between Level 1 and Level 2 during the reporting
period.
There were no Level 3 investments at June 30, 2010 or December 31, 2009.
In January 2010, the FASB issued amended guidance to improve disclosure about fair value
measurements which requires additional disclosures about transfers between Levels 1 and 2 and
separate disclosures about purchases, sales, issuances, and settlements in the reconciliation of
fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing
disclosure requirements relating to the levels of disaggregation of fair value measurement and
inputs and valuation techniques used to measure fair value. Disclosures about purchases, sales,
issuances, and settlements in the rollforward of activity in Level 3 fair value measurements are
effective for fiscal years beginning after December 15, 2010 and for interim periods within those
fiscal years. Management is currently evaluating the implications of this guidance on the Fund’s
financial statements. The remainder of the amended guidance is effective for financial statements
for fiscal years beginning after December 15, 2009 and interim periods within those fiscal years.
Management has evaluated the impact of this guidance on the Fund’s financial statements and
determined that there is no impact as of June 30, 2010.
15
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
Derivative Financial Instruments.
The Fund may engage in various portfolio investment strategies by investing in a number of
derivative financial instruments for the purpose of achieving additional return or of hedging the
value of the Fund’s portfolio, increasing the income of the Fund, hedging or protecting its
exposure to interest rate movements and movements in the securities markets, managing risks,
protecting the value of its portfolio against uncertainty in the level of future currency exchange
rates, or hedging a specific transaction with respect to either the currency in which the
transaction is denominated or another currency. Investing in certain derivative financial
instruments, including participation in the options, futures, or swap markets, entails certain
execution, liquidity, hedging, tax, and securities, interest, credit, or currency market risks.
Losses may arise if the Adviser’s prediction of movements in the direction of the securities,
foreign currency, and interest rate markets is inaccurate. Losses may also arise if the
counterparty does not perform its duties under a contract, or that, in the event of default, the
Fund may be delayed in or prevented from obtaining payments or other contractual remedies owed to
it under derivative contracts. The creditworthiness of the counterparties is closely monitored in
order to minimize these risks. Participation in derivative transactions involves investment risks,
transaction costs, and potential losses to which the Fund would not be subject absent the use of
these strategies. The consequences of these risks, transaction costs, and losses may have a
negative impact on the Fund’s ability to pay distributions.
The Fund’s derivative contracts held at June 30, 2010, if any, are not accounted for as hedging
instruments under GAAP.
Options. The Fund may purchase or write call or put options on securities or indices for the
purpose of achieving additional return or of hedging the value of the Fund’s portfolio. As a writer
of put options, the Fund receives a premium at the outset and then bears the risk of unfavorable
changes in the price of the financial instrument underlying the option. The Fund would incur a loss
if the price of the underlying financial instrument decreases between the date the option is
written and the date on which the option is terminated. The Fund would realize a gain, to the
extent of the premium, if the price of the financial instrument increases between those dates. If a
written call option is exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether there has been a realized gain or loss. If a written put
option is exercised, the premium reduces the cost basis of the security.
As a purchaser of put options, the Fund pays a premium for the right to sell to the seller of the
put option the underlying security at a specified price. The seller of the put has the obligation
to purchase the underlying security upon exercise at the exercise price. If the price of the
underlying security declines, the Fund would realize a gain upon sale or exercise. If the price of
the underlying security increases or stays the same, the Fund would realize a loss upon sale or at
the expiration date, but only to the extent of the premium paid.
In the case of call options, these exercise prices are referred to as “in-the-money,”
“at-the-money,” and “out-of-the-money,” respectively. The Fund may write (a) in-the-money call
options when the Adviser expects that the price of the underlying security will remain stable or
decline during the option period, (b) covered at-the-money call options when the Adviser expects
that the price of the underlying security will remain stable, decline, or advance moderately during
the option period, and (c) out-of-the-money call options when the Adviser expects that the premiums
received from writing the call option will be greater than the appreciation in the price of the
underlying security above the exercise price. By writing a call option, the Fund limits its
opportunity to profit from any increase in the market value of the underlying security above the
exercise price of the option. Out-of-the-money, at-the-money, and in-the-money put options (the
reverse of call options as to the relation of exercise price to market price) may be utilized in
the same market environments that such call options are used in equivalent transactions. During the
six months ended June 30, 2010 the Fund had no investments in options.
16
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
Swap Agreements. The Fund may enter into equity, contract for difference, and interest rate swap or
cap transactions for the purpose of increasing the income of the Fund or hedging or protecting its
exposure to interest rate movements and movements in the securities markets. The use of swaps is a
highly specialized activity that involves investment techniques and risks different from those
associated with ordinary portfolio security transactions. In an interest rate swap, the Fund would
agree to pay periodically to the other party (which is known as the “counterparty”) a fixed rate
payment in exchange for the counterparty agreeing to pay to the Fund periodically a variable rate
payment that is intended to approximate the Fund’s variable rate payment obligation on Series B
Auction Market Cumulative Preferred Shares (“Series B Shares”). In an interest rate cap, the Fund
would pay a premium to the counterparty and, to the extent that a specified variable rate index
exceeds a predetermined fixed rate, would receive from that counterparty payments of the difference
based on the notional amount of such cap. Swap and cap transactions introduce additional risk
because the Fund would remain obligated to pay preferred share dividends when due in accordance
with the Statement of Preferences even if the counterparty defaulted. In a swap, a set of future
cash flows is exchanged between two counterparties. One of these cash flow streams will typically
be based on a reference interest rate combined with the performance of a notional value of shares
of a stock. The other will be based on the performance of the shares of a stock. Depending on the
general state of short-term interest rates and the returns on the Fund’s portfolio securities at
the time a swap transaction reaches its scheduled termination date, there is a risk that the Fund
will not be able to obtain a replacement transaction or that the terms of the replacement will not
be as favorable as on the expiring transaction.
Unrealized gains related to swaps are reported as an asset and unrealized losses are reported as a
liability in the Statement of Assets and Liabilities. The change in the value of swaps, including
the accrual of periodic amounts of interest to be paid or received on swaps, is reported as
unrealized gain or loss in the Statement of Operations. A realized gain or loss is recorded upon
payment or receipt of a periodic payment or termination of swap agreements.
The Fund held an interest rate swap agreement through June 2, 2010, with an average monthly
notional amount while it was outstanding of approximately $100,000,000. At June 30, 2010, there
were no open interest rate swap agreements.
The Fund held an equity contract for difference swap agreement through January 29, 2010, with an
average monthly notional amount while it was outstanding of approximately $2,638,658. At June 30,
2010, there were no open equity contracts for difference swap agreements.
Futures Contracts. The Fund may engage in futures contracts for the purpose of certain hedging,
yield enhancements, and risk management purposes. Upon entering into a futures contract, the Fund
is required to deposit with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount. This is known as the “initial margin.” Subsequent payments
(“variation margin”) are made or received by the Fund each day, depending on the daily fluctuations
in the value of the contract, and are included in unrealized appreciation/depreciation on futures
contracts. The Fund recognizes a realized gain or loss when the contract is closed.
There are several risks in connection with the use of futures contracts as a hedging instrument.
The change in value of futures contracts primarily corresponds with the value of their underlying
instruments, which may not correlate with the change in value of the hedged investments. In
addition, there is the risk that the Fund may not be able to enter into a closing transaction
because of an illiquid secondary market. During the six months ended June 30, 2010, the Fund had no
investments in futures contracts.
17
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
Forward Foreign Exchange Contracts. The Fund may engage in forward foreign exchange contracts for
the purpose of protecting the value of its portfolio against uncertainty in the level of future
currency exchange rates or hedging a specific transaction with respect to either the currency in
which the transaction is denominated or another currency as deemed appropriate by the Adviser.
Forward foreign exchange contracts are valued at the forward rate and are marked-to-market daily.
The change in market value is included in unrealized appreciation/depreciation on foreign currency
translations. When the contract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the value at the time it
was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in the underlying
prices of the Fund’s portfolio securities, but it does establish a rate of exchange that can be
achieved in the future. Although forward foreign exchange contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential gain that might result
should the value of the currency increase. In addition, the Fund could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their contracts. During the six
months ended June 30, 2010, the Fund had no investments in forward foreign exchange contracts.
Effect of Derivative Instruments on the Statement of Operations during the six months ended June
30, 2010:
The following table presents the effect of derivatives on the Statement of Operations during the
six months ended June 30, 2010, by primary risk exposure:
| Change in Unrealized | ||||||||
| Appreciation or | ||||||||
| Depreciation on | ||||||||
| Realized Gain or (Loss) on | Derivatives Recognized | |||||||
| Derivative Contracts | Derivatives Recognized in Income | in Income | ||||||
Equity Contracts |
$ | 86,333 | $ | (1,575 | ) | |||
Interest Rate Contracts |
(1,905,347 | ) | 1,866,144 | |||||
Total |
$ | (1,819,014 | ) | $ | 1,864,569 | |||
Repurchase Agreements. The Fund may enter into repurchase agreements with primary government
securities dealers recognized by the Federal Reserve Board, with member banks of the Federal
Reserve System, or with other brokers or dealers that meet credit guidelines established by the
Adviser and reviewed by the Board. Under the terms of a typical repurchase agreement, the Fund
takes possession of an underlying debt obligation subject to an obligation of the seller to
repurchase, and the Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund’s holding period. It is the policy of the Fund to receive and
maintain securities as collateral whose market value is not less than their repurchase price. The
Fund will make payment for such securities only upon physical delivery or upon evidence of book
entry transfer of the collateral to the account of the custodian. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is marked-to-market on a daily
basis to maintain the adequacy of the collateral. If the seller defaults and the value of the
collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or limited. At June 30, 2010,
there were no open repurchase agreements.
Securities Sold Short. The Fund may enter into short sale transactions. Short selling involves
selling securities that may or may not be owned and, at times, borrowing the same securities for
delivery to the purchaser, with an obligation to replace such borrowed securities at a later date.
The proceeds received from short sales are recorded as liabilities and the Fund records an
unrealized gain or loss to the extent of the difference between the proceeds received and the value
of an
18
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
open short position on the day of determination. The Fund records a realized gain or loss when the
short position is closed out. By entering into a short sale, the Fund bears the market risk of an
unfavorable change in the price of the security sold short. Dividends on short sales are recorded
as an expense by the Fund on the ex-dividend date and interest expense is recorded on the accrual
basis. The broker retains collateral for the value of open positions, which is adjusted
periodically as the value of the position fluctuates. The Fund did not hold any short positions as
of June 30, 2010.
Foreign Currency Translations. The books and records of the Fund are maintained in U.S.
dollars. Foreign currencies, investments, and other assets and liabilities are translated into U.S.
dollars at the current exchange rates. Purchases and sales of investment securities, income, and
expenses are translated at the exchange rate prevailing on the respective dates of such
transactions. Unrealized gains and losses that result from changes in foreign exchange rates and/or
changes in market prices of securities have been included in unrealized appreciation/depreciation
on investments and foreign currency translations. Net realized foreign currency gains and losses
resulting from changes in exchange rates include foreign currency gains and losses between trade
date and settlement date on investment securities transactions, foreign currency transactions, and
the difference between the amounts of interest and dividends recorded on the books of the Fund and
the amounts actually received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial purchase trade date and subsequent sale trade
date is included in realized gain/loss on investments.
Foreign Securities. The Fund may directly purchase securities of foreign issuers. Investing in
securities of foreign issuers involves special risks not typically associated with investing in
securities of U.S. issuers. The risks include possible revaluation of currencies, the inability to
repatriate funds, less complete financial information about companies, and possible future adverse
political and economic developments. Moreover, securities of many foreign issuers and their markets
may be less liquid and their prices more volatile than those of securities of comparable U.S.
issuers.
Foreign Taxes. The Fund may be subject to foreign taxes on income, gains on investments, or
currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and
recoveries as applicable, based upon its current interpretation of tax rules and regulations that
exist in the markets in which it invests.
Restricted and Illiquid Securities. The Fund is not subject to an independent limitation on
the amount it may invest in securities for which the markets are illiquid. Illiquid securities
include securities the disposition of which is subject to substantial legal or contractual
restrictions. The sale of illiquid securities often requires more time and results in higher
brokerage charges or dealer discounts and other selling expenses than does the sale of securities
eligible for trading on national securities exchanges or in the over-the-counter markets.
Restricted securities may sell at a price lower than similar securities that are not subject to
restrictions on resale. Securities freely saleable among qualified institutional investors under
special rules adopted by the SEC may be treated as liquid if they satisfy liquidity standards
established by the Board. The continued liquidity of such securities is not as well assured as that
of publicly traded securities, and accordingly the Board will monitor their liquidity. For the
restricted and illiquid securities the Fund held as of June 30, 2010, refer to the Schedule of
Investments.
Securities Transactions and Investment Income. Securities transactions are accounted for on
the trade date with realized gain or loss on investments determined by using the identified cost
method. Interest income (including amortization of premium and accretion of discount) is recorded
on the accrual basis. Premiums and discounts on debt securities are amortized using the effective
yield to maturity method. Dividend income is recorded on the ex-dividend date except for certain
dividends which are recorded as soon as the Fund is informed of the dividend.
19
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
Custodian Fee Credits and Interest Expense. When cash balances are maintained in the custody
account, the Fund receives credits which are used to offset custodian fees. The gross expenses paid
under the custody arrangement are included in custodian fees in the Statement of Operations with
the corresponding expense offset, if any, shown as “custodian fee credits.” When cash balances are
overdrawn, the Fund is charged an overdraft fee equal to 2.00% above the federal funds rate on
outstanding balances. This amount, if any, would be included in “interest expense” in the Statement
of Operations.
Distributions to Shareholders. Distributions to common shareholders are recorded on the
ex-dividend date. Distributions to shareholders are based on income and capital gains as determined
in accordance with federal income tax regulations, which may differ from income and capital gains
as determined under GAAP. These differences are primarily due to differing treatments of income and
gains on various investment securities and foreign currency transactions held by the Fund, timing
differences, and differing characterizations of distributions made by the Fund. Distributions from
net investment income for federal income tax purposes include net realized gains on foreign
currency transactions. These book/tax differences are either temporary or permanent in nature. To
the extent these differences are permanent, adjustments are made to the appropriate capital
accounts in the period when the differences arise. These reclassifications have no impact on the
NAV of the Fund.
Under the Fund’s distribution policy, the Fund declares and pays monthly distributions from
net investment income, capital gains, and paid-in capital. The actual source of the distribution is
determined after the end of the year. Pursuant to this policy, distributions during the year may be
made in excess of required distributions. To the extent such distributions are made from current
earnings and profits, they are considered ordinary income or long-term capital gains. The Fund’s
current distribution policy may restrict the Fund’s ability to pass through to shareholders all of
its net realized long-term capital gains as a Capital Gain Dividend, subject to the maximum federal
income tax rate of 15%, and may cause such gains to be treated as ordinary income subject to a
maximum federal income tax rate of 35%. The Board will continue to monitor the Fund’s distribution
level, taking into consideration the Fund’s NAV and the financial market environment. The Fund’s
distribution policy is subject to modification by the Board at any time.
Distributions to shareholders of the Fund’s 5.875% Series A Cumulative Preferred Shares,
Series B Auction Market Cumulative Preferred Shares, Series C Auction Market Cumulative Preferred
Shares, 6.000% Series D Cumulative Preferred Shares, and Series E Auction Rate Cumulative Preferred
Shares (“Cumulative Preferred Shares”) are recorded on a daily basis and are determined as
described in Note 5.
| The tax character of distributions paid during the year ended December 31, 2009 was as follows: |
| Common | Preferred | |||||||
Distributions paid from: |
||||||||
Ordinary income (inclusive of short-term capital gains) |
$ | 17,201,564 | $ | 13,549,022 | ||||
Return of capital |
65,457,086 | — | ||||||
Total distributions paid |
$ | 82,658,650 | $ | 13,549,022 | ||||
Provision for Income Taxes. The Fund intends to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). It is the
policy of the Fund to comply with the requirements of the Code applicable to regulated investment
companies and to distribute substantially all of its net investment company taxable income and net
capital gains. Therefore, no provision for federal income taxes is required.
20
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
As of December 31, 2009, the components of accumulated earnings/losses on a tax basis were as
follows:
Accumulative capital loss carryforwards |
$ | (129,734,874 | ) | |
Net unrealized appreciation on investments, swap contracts,
and foreign currency translations |
61,445,915 | |||
Post-October capital loss deferral |
(20,845,593 | ) | ||
Other temporary differences* |
28,095 | |||
Total |
$ | (89,106,457 | ) | |
| * | Other temporary differences are primarily due to income from investments in hybrid securities, adjustments on preferred share class distribution payables, and swap accrual adjustments. |
At December 31, 2009, the Fund had net capital loss carryforwards for federal income tax
purposes of $129,734,874, which are available to reduce future required distributions of net
capital gains to shareholders. $22,445,283 of the loss carryforward is available through 2016; and
$107,289,591 is available through 2017.
Under the current tax law, capital losses related to securities and foreign currency realized
after October 31 and prior to the Fund’s fiscal year end may be treated as occurring on the first
day of the following year. For the year ended December 31, 2009, the Fund had deferred capital
losses of $20,845,593.
The following summarizes the tax cost of investments and the related net unrealized
appreciation/depreciation at June 30, 2010:
| Gross | Gross | |||||||||||||||
| Unrealized | Unrealized | Net Unrealized | ||||||||||||||
| Cost | Appreciation | Depreciation | Depreciation | |||||||||||||
Investments |
$ | 1,671,518,429 | $ | 160,062,072 | $ | (204,770,167 | ) | $ | (44,708,095 | ) | ||||||
The Fund is required to evaluate tax positions taken or expected to be taken in the course of
preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not”
of being sustained by the applicable tax authority. Income tax and related interest and penalties
would be recognized by the Fund as tax expense in the Statement of Operations if the tax positions
were deemed not to meet the more-likely-than-not threshold. For the six months ended June 30, 2010,
the Fund did not incur any income tax, interest, or penalties. As of June 30, 2010, the Adviser has
reviewed all open tax years and concluded that there was no impact to the Fund’s net assets or
results of operations. Tax years ended December 31, 2007 through December 31, 2009 remain subject
to examination by the Internal Revenue Service and state taxing authorities. On an ongoing basis,
the Adviser will monitor the Fund’s tax positions to determine if adjustments to this conclusion
are necessary.
3. Agreements and Transactions with Affiliates. The Fund has entered into an investment advisory
agreement (the “Advisory Agreement”) with the Adviser which provides that the Fund will pay the
Adviser a fee, computed weekly and paid monthly, equal on an annual basis to 1.00% of the value of
the Fund’s average weekly net assets including the liquidation value of preferred shares. In
accordance with the Advisory Agreement, the Adviser provides a continuous investment program for
the Fund’s portfolio and oversees the administration of all aspects of the Fund’s business and
affairs. The Adviser has agreed to reduce the management fee on the incremental assets attributable
to the Preferred Shares if the total return of the NAV of the common shares of the Fund, including
distributions and advisory fee subject to reduction, does not exceed the stated dividend rate or
corresponding swap rate of each particular series of the Preferred Shares for the year.
21
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
The Fund’s total return on the NAV of the common shares is monitored on a monthly basis to
assess whether the total return on the NAV of the common shares exceeds the stated dividend rate or
corresponding swap rate of each particular series of Preferred Shares for the period. For the six
months ended June 30, 2010, the Fund’s total return on the NAV of the common shares did not exceed
the stated dividend rate or corresponding swap rate of the outstanding Preferred Shares. Thus,
advisory fees with respect to the liquidation value of Preferred Share assets were reduced by
$2,277,416.
During the six months ended June 30, 2010, the Fund paid brokerage commissions on security
trades of $198,032 to Gabelli & Company, Inc. (“Gabelli & Co.”), an affiliate of the Adviser.
The cost of calculating the Fund’s NAV per share is a Fund expense pursuant to the Advisory
Agreement between the Fund and the Adviser. During the six months ended June 30, 2010, the Fund
paid or accrued $22,500 to the Adviser in connection with the cost of computing the Fund’s NAV.
As per the approval of the Board, the Fund compensates officers of the Fund, who are employed
by the Fund and are not employed by the Adviser (although the officers may receive incentive based
variable compensation from affiliates of the Adviser) and pays its allocated portion of the cost of
the Fund’s Chief Compliance Officer. For the six months ended June 30, 2010 the Fund paid or
accrued $116,025 in payroll expenses in the Statement of Operations.
The Fund pays each Trustee who is not considered an affiliated person an annual retainer of
$12,000 plus $1,500 for each Board meeting attended. Each Trustee is reimbursed by the Fund for any
out of pocket expenses incurred in attending meetings. All Board committee members receive $1,000
per meeting attended, the Audit Committee Chairman receives an annual fee of $3,000, the Proxy
Voting Committee Chairman receives an annual fee of $1,500, the Nominating Committee Chairman
receives an annual fee of $2,000, and the Lead Trustee receives an annual fee of $1,000. A Trustee
may receive a single meeting fee, allocated among the participating funds, for participation in
certain meetings held on behalf of multiple funds. Trustees who are directors or employees of the
Adviser or an affiliated company receive no compensation or expense reimbursement from the Fund.
There was a reduction in the advisory fee paid to the Adviser relating to certain portfolio
holdings, i.e., unsupervised assets, of the Fund with respect to which the Adviser has transferred
dispositive and voting control to the Fund’s Proxy Voting Committee. During the six months ended
June 30, 2010, the Fund’s Proxy Voting Committee exercised control and discretion over all rights
to vote or consent with respect to such securities and the Adviser reduced its fee with respect to
such securities by $3,827.
4. Portfolio Securities. Purchases and sales of securities for the six months ended June 30, 2010,
other than short-term securities and U.S Government obligations, aggregated $115,527,796 and
$127,656,245, respectively.
5. Capital. The Fund is authorized to issue an unlimited number of common shares of beneficial
interest (par value $0.001). The Board has authorized the repurchase and retirement of its shares
on the open market when the shares are trading at a discount of 7.5% or more (or such other
percentage as the Board may determine from time to time) from the NAV of the shares. During the six
months ended June 30, 2010, the Fund repurchased and retired 298,500 shares of beneficial interest
in the open market at a cost of $4,095,098 and an average discount of approximately 14.73% from its
NAV.
22
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
Transactions in shares of beneficial interest were as follows:
| Six Months Ended | ||||||||||||||||
| June 30, 2010 | Year Ended | |||||||||||||||
| (Unaudited) | December 31, 2009 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Net decrease from repurchase of common shares |
(298,500 | ) | $ | (4,095,098 | ) | (60,000 | ) | $ | (635,911 | ) | ||||||
The Fund’s Declaration of Trust, as amended, authorizes the issuance of an unlimited number of
shares of $0.001 par value Cumulative Preferred Shares. The Cumulative Preferred Shares is senior
to the common shares and results in the financial leveraging of the common shares. Such leveraging
tends to magnify both the risks and opportunities to common shareholders. Dividends on shares of
the Cumulative Preferred Shares are cumulative. The Fund is required by the 1940 Act and by the
Statements of Preferences to meet certain asset coverage tests with respect to the Cumulative
Preferred Shares. If the Fund fails to meet these requirements and does not correct such failure,
the Fund may be required to redeem, in part or in full, the 5.875% Series A, Series B Auction
Market, Series C Auction Market, 6.000% Series D, and Series E Auction Rate Cumulative Preferred
Shares at redemption prices of $25, $25,000, $25,000, $25, and $25,000, respectively, per share
plus an amount equal to the accumulated and unpaid dividends whether or not declared on such shares
in order to meet these requirements. Additionally, failure to meet the foregoing asset coverage
requirements could restrict the Fund’s ability to pay dividends to common shareholders and could
lead to sales of portfolio securities at inopportune times. The income received on the Fund’s
assets may vary in a manner unrelated to the fixed and variable rates, which could have either a
beneficial or detrimental impact on net investment income and gains available to common
shareholders.
On October 12, 2004, the Fund received net proceeds of $77,280,971 (after underwriting
discounts of $2,520,000 and offering expenses of $199,029) from the public offering of 3,200,000
shares of 5.875% Series A Cumulative Preferred Shares. Commencing October 12, 2009 and thereafter,
the Fund, at its option, may redeem the 5.875% Series A Cumulative Preferred Shares in whole or in
part at the redemption price at any time. The Board has authorized the repurchase of Series A
Cumulative Preferred Shares in the open market at prices less than the $25 liquidation value per
share. During the six months ended June 30, 2010 the Fund did not repurchase any shares of 5.875%
Series A Cumulative Preferred Shares. At June 30, 2010, 3,048,019 shares of 5.875% Series A
Cumulative Preferred Shares were outstanding and accrued dividends amounted to $37,306.
On October 12, 2004, the Fund received net proceeds of $217,488,958 (after underwriting
discounts of $2,200,000 and offering expenses of $311,042) from the public offering of 4,000 shares
of Series B Shares and 4,800 shares of Series C Auction Market Cumulative Preferred Shares (“Series
C Shares”), respectively. The dividend rate, as set by the auction process, which is generally held
every seven days, is expected to vary with short-term interest rates. Since February 2008, the
number of Series B and Series C Shares subject to bid orders by potential holders has been less
than the number of Series B and Series C Shares subject to sell orders. Therefore, the weekly
auctions have failed, and the dividend rate since then has been the maximum rate. Holders that have
submitted sell orders have not been able to sell any or all of the Series B or Series C Shares for
which they have submitted sell orders. The current maximum rate for both Series B and Series C
Shares is 125 basis points greater than the seven day Telerate/British Bankers Association LIBOR
rate on the day of such auction. The dividend rates of Series B
Shares ranged from 1.458% to 1.581%
during the six months ended June 30, 2010. The dividend rates of Series C Shares ranged from 1.458%
to 1.583% during the six months ended June 30, 2010. Existing shareholders may submit an order to
hold, bid, or sell such shares on each auction date. Series B and C Shares shareholders may also
trade their shares in the secondary market. The Fund, at its option, may redeem the Series B and C
Shares in whole or in part at the redemption price at any time. There were no redemptions of Series
B and C Shares during the six months ended June 30, 2010. At June 30, 2010, 3,600 and 4,320 shares
of the Series B and C Shares were outstanding with an annualized dividend rate of 1.578% and 1.579%
per share and accrued dividends amounted to $3,945 and $28,404, respectively.
23
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
On November 3, 2005, the Fund received net proceeds of $62,617,239 (after underwriting
discounts of $2,047,500 and offering expenses of $335,261) from the public offering of 2,600,000
shares of 6.000% Series D Cumulative Preferred Shares. Commencing November 3, 2010 and thereafter,
the Fund, at its option, may redeem the 6.000% Series D Cumulative Preferred Shares in whole or in
part at the redemption price at any time. The Board has authorized the repurchase of Series D
Cumulative Preferred Shares in the open market at prices less than the $25 liquidation value per
share. During the six months ended June 30, 2010 the Fund did not repurchase any shares of 6.00%
Series D Cumulative Preferred Shares. At June 30, 2010, 2,542,296 shares of 6.000% Series D
Cumulative Preferred Shares were outstanding and accrued dividends amounted to $31,779.
On November 3, 2005, the Fund received net proceeds of $133,379,387 (after underwriting
discounts of $1,350,000 and offering expenses of $270,613) from the public offering of 5,400 shares
of Series E Auction Rate Cumulative Preferred Shares (“Series E Shares”). The dividend rate, as set
by the auction process, which is generally held every seven days, is expected to vary with
short-term interest rates. Since February 2008 the number of Series E Shares subject to bid orders
by potential holders has been less than the number of Series E Shares subject to sell orders.
Therefore the weekly auctions have failed, and the dividend rate since then has been the maximum
rate. Holders that have submitted sell orders have not been able to sell any or all of the Series E
Shares for which they have submitted sell orders. The current maximum rate is 150 basis points
greater than the seven day Telerate/British Bankers Association LIBOR rate on the day of such
auction. The dividend rates of Series E Shares ranged from 1.708% to 1.831% during the year ended
December 31, 2009. Existing shareholders may submit an order to hold, bid, or sell such shares on
each auction date. Shareholders of the Series E Shares may also trade their shares in the secondary
market. The Fund, at its option, may redeem the Series E Shares in whole or in part at the
redemption price at any time. There were no redemptions of Series E Shares during the six months
ended June 30, 2010. At June 30, 2010, 4,860 Series E Shares were outstanding with an annualized
dividend rate of 1.829% and accrued dividends amounted to $43,210.
The holders of Cumulative Preferred Shares generally are entitled to one vote per share held
on each matter submitted to a vote of shareholders of the Fund and will vote together with holders
of common shares as a single class. The holders of Cumulative Preferred Shares voting together as a
single class also have the right currently to elect two Trustees and under certain circumstances
are entitled to elect a majority of the Board of Trustees. In addition, the affirmative vote of a
majority of the votes entitled to be cast by holders of all outstanding shares of the Preferred
Shares, voting as a single class, will be required to approve any plan of reorganization adversely
affecting the Preferred Shares, and the approval of two-thirds of each class, voting separately, of
the Fund’s outstanding voting stock must approve the conversion of the Fund from a closed-end to an
open-end investment company. The approval of a majority (as defined in the 1940 Act) of the
outstanding Preferred Shares and a majority (as defined in the 1940 Act) of the Fund’s outstanding
voting securities are required to approve certain other actions, including changes in the Fund’s
investment objectives or fundamental investment policies.
6. Transactions in Securities of Affiliated Issuers. The 1940 Act defines affiliated issuers as
those in which the Fund’s holdings of an issuer represent 5% or more of the outstanding voting
securities of the issuer. A summary of the Fund’s transactions in the securities of affiliated
issuer during the six months ended June 30, 2010 is set forth below:
| Percent | ||||||||||||||||||||||||||||
| Net Change in | Value at | Owned of | ||||||||||||||||||||||||||
| Beginning | Shares | Ending | Unrealized | Realized | June 30, | Shares | ||||||||||||||||||||||
| Shares | Sold | Shares | Depreciation | Loss | 2010 | Outstanding | ||||||||||||||||||||||
Trans-Lux Corp. |
200,000 | (50,000 | ) | 150,000 | $ | (13,531 | ) | $ | (331,148 | ) | $ | 91,500 | 6.14 | % | ||||||||||||||
24
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
NOTES TO FINANCIAL STATEMENTS (Continued) (Unaudited)
7. Indemnifications. The Fund enters into contracts that contain a variety of indemnifications. The
Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior
claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts
and expects the risk of loss to be remote.
8. Other Matters. On April 24, 2008, the Investment Adviser entered into a settlement with the SEC
to resolve an inquiry regarding prior frequent trading activity in shares of the GAMCO Global
Growth Fund (the “Global Growth Fund”) by one investor who was banned from the Global Growth Fund
in August 2002. In an administrative order that was entered in connection with the settlement, the
SEC found that the Investment Adviser had willfully violated Section 206(2) of the Investment
Advisers Act of 1940, Section 17(d) of the 1940 Act and Rule 17d-1 thereunder, and had willfully
aided and abetted and caused violations of Section 12(d)(1)(B)(i) of the 1940 Act. Under the terms
of the settlement, the Investment Adviser, while neither admitting nor denying the SEC’s findings
and allegations, paid $16 million (which included a $5 million civil monetary penalty),
approximately $12.8 million of which is in the process of being paid to shareholders of the Global
Growth Fund in accordance with a plan developed by an independent distribution consultant and
approved by the independent directors of the Global Growth Fund and acceptable to the staff of the
SEC, and agreed to cease and desist from future violations of the above referenced federal
securities laws. The SEC’s order also noted the cooperation that the Investment Adviser gave the
staff of the SEC. The settlement will not have a material adverse impact on the Investment Adviser
or its ability to fulfill its obligations under the Investment Advisory Agreement. On the same day,
the SEC filed a civil action against the Executive Vice President and Chief Operating Officer of
the Investment Adviser, alleging violations of certain federal securities laws arising from the
same matter. The officer is also an officer of the Fund, the Global Growth Fund, and other funds in
the Gabelli/GAMCO fund complex. The officer denied the allegations and is continuing in his
positions with the Investment Adviser and the funds. The court dismissed certain claims, finding
that the SEC was not entitled to pursue various remedies against the officer while leaving one
remedy in the event the SEC were able to prove violations of law. The court, in response to a
motion by the SEC, subsequently dismissed the remaining remedy without prejudice against the
officer, which would allow the SEC to appeal the court’s rulings. The Investment Adviser currently
expects that any resolution of the action against the officer will not have a material adverse
impact on the Investment Adviser or its ability to fulfill its obligations under the Investment
Advisory Agreement.
9. Subsequent Events. Management has evaluated the impact on the Fund of all subsequent events
occurring through the date the financial statements were issued and has determined that there were
no subsequent events requiring recognition or disclosure in the financial statements.
Certifications
The Fund’s Chief Executive Officer has certified to the New York Stock Exchange (“NYSE”) that,
as of June 30, 2010, he was not aware of any violation by the Fund of applicable NYSE corporate
governance listing standards. The Fund reports to the SEC on Form N-CSR which contains
certifications by the Fund’s principal executive officer and principal financial officer that
relate to the Fund’s disclosure in such reports and that are required by Rule 30a-2(a) under the
1940 Act.
25
THE GABELLI DIVIDEND & INCOME TRUST
AND YOUR PERSONAL PRIVACY
AND YOUR PERSONAL PRIVACY
Who are we?
The Gabelli Dividend & Income Trust (the “Fund”) is a closed-end management investment company
registered with the Securities and Exchange Commission under the Investment Company Act of 1940. We
are managed by Gabelli Funds, LLC, which is affiliated with GAMCO Investors, Inc. GAMCO Investors,
Inc. is a publicly held company that has subsidiaries that provide investment advisory or brokerage
services for a variety of clients.
What kind of non-public information do we collect about you if you become a shareholder?
When you purchase shares of the Fund on the New York Stock Exchange, you have the option of
registering directly with our transfer agent in order, for example, to participate in our dividend
reinvestment plan.
| • | Information you give us on your application form. This could include your name, address, telephone number, social security number, bank account number, and other information. | |
| • | Information about your transactions with us. This would include information about the shares that you buy or sell; it may also include information about whether you sell or exercise rights that we have issued from time to time. If we hire someone else to provide services—like a transfer agent—we will also have information about the transactions that you conduct through them. |
What information do we disclose and to whom do we disclose it?
We do not disclose any non-public personal information about our customers or former customers to
anyone other than our affiliates, our service providers who need to know such information, and as
otherwise permitted by law. If you want to find out what the law permits, you can read the privacy
rules adopted by the Securities and Exchange Commission. They are in volume 17 of the Code of
Federal Regulations, Part 248. The Commission often posts information about its regulations on its
website, www.sec.gov.
What do we do to protect your personal information?
We restrict access to non-public personal information about you to the people who need to know that
information in order to provide services to you or the Fund and to ensure that we are complying
with the laws governing the securities business. We maintain physical, electronic, and procedural
safeguards to keep your personal information confidential.
TRUSTEES AND OFFICERS
THE GABELLI DIVIDEND & INCOME TRUST
One Corporate Center, Rye, NY 10580-1422
THE GABELLI DIVIDEND & INCOME TRUST
One Corporate Center, Rye, NY 10580-1422
Trustees |
Mario J. Gabelli, CFA |
Chairman & Chief Executive Officer, |
GAMCO Investors, Inc. |
Anthony J. Colavita |
President, |
Anthony J. Colavita, P.C. |
James P. Conn |
Former Managing Director & |
Chief Investment Officer, |
Financial Security Assurance Holdings Ltd. |
Mario d’Urso |
Former Italian Senator |
Frank J. Fahrenkopf, Jr. |
President & Chief Executive Officer, |
American Gaming Association |
Michael J. Melarkey |
Attorney-at-Law, |
Avansino, Melarkey, Knobel & Mulligan |
Salvatore M. Salibello |
Certified Public Accountant, |
Salibello & Broder, LLP |
Edward T. Tokar |
Senior Managing Director, |
Beacon Trust Company |
Anthonie C. van Ekris |
Chairman, BALMAC International, Inc. |
Salvatore J. Zizza |
Chairman, Zizza & Co., Ltd. |
Officers* |
Bruce N. Alpert |
President & Acting Treasurer |
Carter W. Austin |
Vice President |
Peter D. Goldstein |
Chief Compliance Officer & Acting Secretary |
Investment Adviser |
Gabelli Funds, LLC |
One Corporate Center |
Rye, New York 10580-1422 |
Custodian |
State Street Bank and Trust Company |
Counsel |
Skadden, Arps, Slate, Meagher & Flom LLP |
Transfer Agent and Registrar |
Computershare Trust Company, N.A. |
Stock Exchange Listing |
| 5.875% | 6.00% | |||||||||||
| Common | Preferred | Preferred | ||||||||||
NYSE–Symbol: |
GDV | GDV PrA | GDV PrD | |||||||||
Shares Outstanding: |
83,170,137 | 3,048,019 | 2,542,296 | |||||||||
| * | Agnes Mullady, Treasurer and Secretary, is on a leave of absence. |
The Net Asset Value per share appears in the Publicly Traded Funds column, under the heading
“General Equity Funds,” in Monday’s The Wall Street Journal. It is also listed in Barron’s Mutual
Funds/Closed End Funds section under the heading “General Equity Funds.”
The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.
The Net Asset Value per share may be obtained each day by calling (914) 921-5070 or visiting www.gabelli.com.
For general information about the Gabelli Funds, call 800-GABELLI (800-422-3554), fax us at
914-921-5118, visit Gabelli Funds’ Internet homepage at: www.gabelli.com, or e-mail us at:
closedend@gabelli.com
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as
amended, that the Fund may, from time to time, purchase its common shares in the open market when
the Fund’s shares are trading at a discount of 7.5% or more from the net asset value of the
shares. The Fund may also, from time to time, purchase its preferred shares in the open market
when the preferred shares are trading at a discount to the liquidation value.
| THE GABELLI DIVIDEND & INCOME TRUST One Corporate Center Rye, NY 10580-1422 (914) 921-5070 www.gabelli.com Semi Annual Report June 30, 2010 |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. | |
| (b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
There has been no change, as of the date of this filing, in any of the portfolio managers
identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed
annual report on Form N-CSR.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
REGISTRANT PURCHASES OF EQUITY SECURITIES
| (c) Total Number of | (d) Maximum Number (or | |||||||
| Shares (or Units) | Approximate Dollar Value) of | |||||||
| (a) Total Number of | Purchased as Part of | Shares (or Units) that May Yet | ||||||
| Shares (or Units) | (b) Average Price Paid | Publicly Announced Plans | Be Purchased Under the Plans | |||||
| Period | Purchased | per Share (or Unit) | or Programs | or Programs | ||||
Month #1
|
Common — N/A | Common — N/A | Common — N/A | Common — 83,468,637 | ||||
01/01/10 |
||||||||
through
|
Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A —3,048,019 | ||||
01/31/10 |
||||||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — 2,542,296 | |||||
Month #2
|
Common — 10,000 | Common — $12.9735 | Common — 10,000 | Common — 83,468,637 — | ||||
02/01/10
|
10,000 = 83,458,637 | |||||||
through |
||||||||
02/28/10
|
Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A —3,048,019 | ||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — 2,542,296 | |||||
Month #3
03/01/10 through |
Common — 163,400 | Common — $13.5268 | Common — 163,400 | Common — 83,458,637 — 163,400 = 83,295,237 |
||||
03/31/10
|
Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A —3,048,019 | ||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — 2,542,296 | |||||
Month #4
04/01/10 through |
Common — 113,100 | Common — $14.1406 | Common — 113,100 | Common — 83,295,237 — 113,100 = 83,182,137 |
||||
04/30/10
|
||||||||
| Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A —3,048,019 | |||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — 2,542,296 | |||||
Month #5
|
Common — N/A | Common — N/A | Common — N/A | Common — 83,182,137 | ||||
05/01/10 |
||||||||
through
|
Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A —3,048,019 | ||||
05/31/10 |
||||||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — 2,542,296 |
| (c) Total Number of | (d) Maximum Number (or | |||||||
| Shares (or Units) | Approximate Dollar Value) of | |||||||
| (a) Total Number of | Purchased as Part of | Shares (or Units) that May Yet | ||||||
| Shares (or Units) | (b) Average Price Paid | Publicly Announced Plans | Be Purchased Under the Plans | |||||
| Period | Purchased | per Share (or Unit) | or Programs | or Programs | ||||
Month #6
06/01/10 |
Common — 12,000 | Common — $12.8150 | Common — 12,000 | Common — 83,182,137 — 12,000 = 83,170,137 |
||||
through |
||||||||
06/30/10
|
Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A —3,048,019 | ||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — 2,542,296 | |||||
Total
|
Common — 298,500 | Common — $13.7189 | Common — 298,500 | N/A | ||||
| Preferred Series A — N/A | Preferred Series A — N/A | Preferred Series A — N/A | ||||||
| Preferred Series D — N/A | Preferred Series D — N/A | Preferred Series D — N/A |
Footnote columns (c) and (d) of the table, by disclosing the following information in the
aggregate for all plans or programs publicly announced:
| a. | The date each plan or program was announced — The notice of the potential repurchase of common and preferred shares occurs quarterly in the Fund’s quarterly report in accordance with Section 23(c) of the Investment Company Act of 1940, as amended. | |
| b. | The dollar amount (or share or unit amount) approved — Any or all common shares outstanding may be repurchased when the Fund’s common shares are trading at a discount of 7.5% or more from the net asset value of the shares. | |
| Any or all preferred shares outstanding may be repurchased when the Fund’s preferred shares are trading at a discount to the liquidation value of $25.00. | ||
| c. | The expiration date (if any) of each plan or program — The Fund’s repurchase plans are ongoing. | |
| d. | Each plan or program that has expired during the period covered by the table — The Fund’s repurchase plans are ongoing. | |
| e. | Each plan or program the registrant has determined to terminate prior to expiration, or under which the registrant does not intend to make further purchases. — The Fund’s repurchase plans are ongoing. |
Item 10. Submission of Matters to a Vote of Security Holders.
On January 15, 2010, the Board of Trustees of The Gabelli Dividend & Income Trust (the “Fund”)
approved and adopted an amendment (the “Amendment”) to the By-Laws of the Fund. The Amendment was
effective as of January 15, 2010. The Amendment sets forth the processes and procedures that
shareholders of the Fund must follow, and specifies additional information that shareholders of the
Fund must provide, when proposing trustee nominations at any annual or special meeting of
shareholders or other business to be considered at an annual meeting of shareholders.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) |
| and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). | |||
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| (a)(1) | Not applicable. | ||
| (a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | ||
| (a)(3) | Not applicable. | ||
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
(registrant)
|
The Gabelli Dividend & Income Trust
|
|||
By (Signature and Title)*
|
/s/ Bruce N. Alpert
|
|||
Date
|
9/1/10
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act
of 1940, this report has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
By (Signature and Title)*
|
/s/ Bruce N. Alpert
|
|||
| Financial Officer | ||||
Date
|
9/1/10
|
| * | Print the name and title of each signing officer under his or her signature. |