Gabelli Trust Announces Continued Monthly Cash Distributions
Gabelli Global Utility & Income Trust Monthly Distributions
The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE American: GLU) has reaffirmed its commitment to providing investors with consistent monthly cash distributions. Recently, the Board declared a cash distribution of $0.10 per share for the upcoming months of July, August, and September.
Distribution Details
From July through September, shareholders can expect the following distribution schedule:
Distribution Schedule
- July: Distribution payable on July 24.
- August: Distribution payable on August 22.
- September: Distribution payable on September 23.
Commitment to Investors
Initially, the Gabelli Global Utility & Income Trust established a policy of distributing at least 6% of its initial public offering price of $20.00 per share, which translates to the consistent payment of $0.10 per share each month. This policy has been a pivotal aspect of the Fund's operations, providing investors with a reliable source of income.
Quarterly Reviews
Each quarter, the Board carefully evaluates potential distributions derived from the Fund's income, realized capital gains, or available capital. This evaluation ensures that the distribution levels remain aligned with the Fund's net asset value and the prevailing financial market conditions. If necessary, the Fund may issue an additional adjusting distribution in December, incorporating any surplus income or net realized capital gains to meet annual minimum distribution requirements.
Understanding Tax Implications
Investors should be aware that distributions may consist of long-term capital gains or qualified dividend income, both subject to federal income tax rates. Currently, the maximum rate for long-term capital gains sits at 20% for taxable accounts. Moreover, certain U.S. shareholders with incomes surpassing specified thresholds could encounter a 3.8% Medicare surcharge on their net investment income, which includes dividends from the Fund.
Return of Capital Considerations
In cases where the Fund's earnings do not meet or exceed the total distributions for the year, any excess distribution above the Fund’s earnings will be categorized as a return of capital. This type of distribution is generally not taxable and is recorded as a decrease in the shareholder's cost basis.
Distribution Allocation Insights
Throughout the year, long-term capital gains, qualified dividend income, investment company taxable income, and any returns of capital will be proportionately allocated among all distributions to common shareholders. Based on existing records, each distribution in 2025 is anticipated to comprise approximately 17% from net investment income, 30% from net capital gains, and 53% categorized as a return of capital.
Final Determinations
The precise allocation and sources of all distributions will be finalized at year-end and may differ from monthly estimates provided to shareholders. Investors should refrain from drawing conclusions about performance based solely on the current distribution figures.
Investor Communication
All taxable shareholders will receive a notification in early 2026 regarding the distribution components and tax considerations through Form 1099-DIV. This ensures transparency and aids in the accurate filing of taxes for investors.
Contact Information
For further inquiries about the Fund's distribution policy and other related information, investors may contact:
Adam Tokar
Phone: (914) 457-1079
About The Gabelli Global Utility & Income Trust
The Gabelli Global Utility & Income Trust operates as a diversified, closed-end management investment company with total net assets valued at $124 million. The Fund focuses on delivering a consistent after-tax total return for investors while emphasizing tax-advantaged dividend income. Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI), oversees the Fund's management.
Frequently Asked Questions
1. What is the monthly distribution amount declared by the Fund?
The Board has declared a monthly distribution of $0.10 per share.
2. When will the distributions be paid?
Distributions are scheduled for July 24, August 22, and September 23.
3. How does the Fund determine its distribution levels?
The Board reviews income, realized capital gains, and market conditions quarterly to guide distribution levels.
4. What are the tax implications of these distributions?
Distributions may be subject to long-term capital gains tax, currently capped at 20% for taxable accounts.
5. Who manages The Gabelli Global Utility & Income Trust?
The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
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