Terms

Series

4.250% Series K Cumulative Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

4.25%

Rate Type

Fixed

Annual Dividend

$1.06

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 7, 2026

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Indebtedness And Debt Obligations Of The Fund; Pari Passu With: Series B Auction Market Cumulative Preferred Shares, Series C Auction Market Cumulative Preferred Shares, Series E Auction Rate Cumulative Preferred Shares, Series G Cumulative Preferred Shares, Series H Cumulative Preferred Shares, Series J Cumulative Term Preferred Shares, Any Other Preferred Shares Issued By The Fund; Senior To: Common Shares, Any Shares Ranking Junior To Preferred Shares

Credit Rating (Moody's)

anticipated rating from Moody's (rating level not stated)

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Shares Offered

6,000,000

Prospectus Summary

The Gabelli Dividend & Income Trust (NYSE: GDV), a diversified closed-end fund managed by Gabelli Funds, LLC, is offering 6,000,000 shares of its 4.250% Series K Cumulative Preferred Shares at a $25.00 liquidation preference per share, callable at the Fund's option beginning October 7, 2026 at par plus accrued dividends. These are direct preferred shares (not depositary shares) with a fixed annual dividend of $1.0625 per share ($0.265625 quarterly), payable on March 26, June 26, September 26, and December 26, commencing December 26, 2021. Crucially, dividends are cumulative — if the Fund fails to declare or pay a dividend, the shortfall accrues and must be paid in full before any distribution can be made to common shareholders. Series K Preferred Shares rank senior to the Fund's common shares with respect to dividends and liquidation distributions, and on parity with all existing preferred series (Series B, C, E, G, H, and J). They are junior to any debt or borrowings incurred by the Fund, which take priority in the capital structure. As a closed-end fund, the Fund is required by the 1940 Act to maintain at least 200% asset coverage for all preferred shares at all times; failure to cure a breach within 49 days triggers mandatory partial or full redemption of preferred shares. Additionally, Moody's rating agency guidelines impose a Basic Maintenance Amount test, and failure to cure within 10 business days similarly triggers mandatory redemption. The Fund may also redeem the Series K Preferred Shares at any time prior to October 7, 2026 if necessary to maintain its status as a regulated investment company (RIC), which is effectively a tax-driven regulatory call provision. At the $25.00 offering price, the Series K Preferred Shares yield 4.250% annually. Dividends are paid quarterly on the 26th of March, June, September, and December, with the record date set as the fifth preceding business day before each payment date. The Fund's prospectus refers investors to the accompanying Taxation section and SAI for U.S. federal income tax treatment; no explicit determination is made in this supplement as to whether dividends qualify for the 15%/20% qualified dividend income (QDI) rate for individual holders or the dividends-received deduction (DRD) for corporate holders, as treatment will depend on the composition of the Fund's investment income. Dividend payments can be interrupted if the Fund's indebtedness causes it to fail the 1940 Act asset coverage thresholds, or if parity preferred shares have unpaid cumulative dividends that must be satisfied on a pro rata basis first.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

The Fund cannot pay dividends on common shares unless the 200% 1940 Act asset coverage test is met, and no full dividends on Series K Preferred Shares will be paid unless all parity preferred shares are also current; additionally, outstanding Fund indebtedness with inadequate asset coverage can block preferred distributions.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 75 (Strong)