UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
MANAGEMENT INVESTMENT COMPANY
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: March 31, 2011
Form N-Q is to be used by management investment companies, other than small business investment
companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the
Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant
to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review, inspection, and
policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will
make this information public. A registrant is not required to respond to the collection of
information contained in Form N-Q 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 the
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. | Schedule of Investments. |
The Schedule(s) of Investments is attached herewith.
The Gabelli Dividend & Income Trust
First Quarter Report — March 31, 2011
First Quarter Report — March 31, 2011
|
|
 |
||||
| Mario J. Gabelli, CFA | Barbara G. Marcin, CFA | Robert D. Leininger, CFA |
To Our Shareholders,
During the first quarter of 2011, The Gabelli Dividend & Income Trust’s (the “Fund”) net asset
value (“NAV”) basis total return was 9.0% compared with the Standard & Poor’s (“S&P”) 500 Index of
5.9% and the Dow Jones Industrial Average of 7.1%. The total return for the Fund’s publicly traded
shares was 9.7% during the first quarter of 2011.
| Enclosed is the investment portfolio as of March 31, 2011. |
Comparative Results
Average Annual Returns through March 31, 2011 (a) (Unaudited)
| Since | ||||||||||||||||||||
| Inception | ||||||||||||||||||||
| Quarter | 1 Year | 3 Year | 5 Year | (11/28/03) | ||||||||||||||||
Gabelli Dividend & Income Trust |
||||||||||||||||||||
NAV Total Return (b) |
8.96 | % | 23.87 | % | 3.98 | % | 4.15 | % | 6.60 | % | ||||||||||
Investment Total . Return (c) |
9.69 | 27.65 | 5.84 | 6.05 | 4.99 | |||||||||||||||
S&P 500 Index |
5.92 | 15.65 | 2.35 | 2.62 | 5.22 | |||||||||||||||
Dow Jones Industrial Average |
7.07 | 16.49 | 3.13 | 4.85 | 10.01 | (d) | ||||||||||||||
Nasdaq Composite Index |
5.05 | 17.19 | 7.92 | 4.44 | 5.75 | |||||||||||||||
| (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. | |
| (d) | From November 30, 2003, the date closest to the Fund’s inception for which data is available. |
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.
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS
March 31, 2011 (Unaudited)
SCHEDULE OF INVESTMENTS
March 31, 2011 (Unaudited)
| Market | ||||||||
| Shares | Value | |||||||
COMMON STOCKS — 95.2% |
||||||||
Aerospace — 1.9% |
||||||||
| 10,000 | Goodrich Corp. |
$ | 855,300 | |||||
| 32,000 | Kaman Corp. |
1,126,400 | ||||||
| 147,000 | Rockwell Automation Inc. |
13,913,550 | ||||||
| 1,344,000 | Rolls-Royce Group plc† |
13,345,992 | ||||||
| 139,000 | The Boeing Co. |
10,276,270 | ||||||
| 39,517,512 | ||||||||
Agriculture — 0.2% |
||||||||
| 100,000 | Archer-Daniels-Midland Co. |
3,601,000 | ||||||
Automotive — 0.3% |
||||||||
| 220,000 | Ford Motor Co.† |
3,280,200 | ||||||
| 27,100 | Navistar International Corp.† |
1,878,843 | ||||||
| 4,000 | PACCAR Inc. |
209,400 | ||||||
| 5,368,443 | ||||||||
Automotive: Parts and Accessories — 1.2% |
||||||||
| 24,000 | BorgWarner Inc.† |
1,912,560 | ||||||
| 411,000 | Genuine Parts Co. |
22,046,040 | ||||||
| 23,958,600 | ||||||||
Building and Construction — 0.1% |
||||||||
| 30,000 | Layne Christensen Co.† |
1,035,000 | ||||||
Business Services — 0.6% |
||||||||
| 165,000 | Diebold Inc. |
5,850,900 | ||||||
| 130,000 | Intermec Inc.† |
1,402,700 | ||||||
| 20,000 | MasterCard Inc., Cl. A |
5,034,400 | ||||||
| 110,000 | Trans-Lux Corp.† |
16,500 | ||||||
| 12,304,500 | ||||||||
Cable and Satellite — 1.5% |
||||||||
| 391,000 | Cablevision Systems Corp., Cl. A |
13,532,510 | ||||||
| 16,000 | Cogeco Inc. |
684,724 | ||||||
| 230,000 | DISH Network Corp., Cl. A† |
5,602,800 | ||||||
| 50,000 | EchoStar Corp., Cl. A† |
1,892,500 | ||||||
| 67,000 | Liberty Global Inc., Cl. A† |
2,774,470 | ||||||
| 33,000 | Liberty Global Inc., Cl. C† |
1,319,670 | ||||||
| 160,000 | Rogers Communications Inc., Cl. B |
5,824,000 | ||||||
| 31,630,674 | ||||||||
Communications Equipment — 0.1% |
||||||||
| 50,000 | Thomas & Betts Corp.† |
2,973,500 | ||||||
Computer Hardware — 0.2% |
||||||||
| 50,000 | Hewlett-Packard Co. |
2,048,500 | ||||||
| 21,000 | SanDisk Corp.† |
967,890 | ||||||
| 3,016,390 | ||||||||
Computer Software and Services — 0.2% |
||||||||
| 60,000 | Microsoft Corp. |
1,521,600 | ||||||
| 150,000 | Yahoo! Inc.† |
2,497,500 | ||||||
| 4,019,100 | ||||||||
Consumer Products — 4.8% |
||||||||
| 550,000 | Alberto-Culver Co. |
20,498,500 | ||||||
| 15,000 | Altria Group
Inc. |
390,450 | ||||||
| 165,000 | Avon Products Inc. |
4,461,600 | ||||||
| 90,000 | Fortune Brands Inc. |
5,570,100 | ||||||
| 50,000 | Hanesbrands Inc.† |
1,352,000 | ||||||
| 90,000 | Harman International Industries Inc. |
4,213,800 | ||||||
| 195,000 | Kimberly-Clark Corp. |
12,727,650 | ||||||
| 25,000 | Philip Morris International Inc. |
1,640,750 | ||||||
| 956,000 | Swedish Match AB |
31,791,442 | ||||||
| 145,000 | The Procter & Gamble Co. |
8,932,000 | ||||||
| 100,000 | Tupperware Brands Corp. |
5,971,000 | ||||||
| 97,549,292 | ||||||||
Consumer Services — 0.1% |
||||||||
| 19,500 | Dollar Thrifty Automotive Group Inc.† |
1,301,235 | ||||||
Diversified Industrial — 3.6% |
||||||||
| 100,000 | Bouygues SA |
4,802,160 | ||||||
| 126,000 | Cooper Industries plc |
8,177,400 | ||||||
| 687,000 | General Electric Co. |
13,774,350 | ||||||
| 280,000 | Honeywell International Inc. |
16,718,800 | ||||||
| 110,000 | ITT Corp. |
6,605,500 | ||||||
| 121,000 | Owens-Illinois Inc.† |
3,652,990 | ||||||
| 7,000 | Sulzer AG |
1,054,763 | ||||||
| 252,000 | Textron Inc. |
6,902,280 | ||||||
| 255,000 | Tyco International Ltd. |
11,416,350 | ||||||
| 73,104,593 | ||||||||
Electronics — 1.5% |
||||||||
| 40,000 | Dionex Corp.† |
4,722,000 | ||||||
| 919,900 | Intel Corp. |
18,554,383 | ||||||
| 130,000 | TE Connectivity Ltd. |
4,526,600 | ||||||
| 100,000 | Texas Instruments Inc. |
3,456,000 | ||||||
| 31,258,983 | ||||||||
Energy and Utilities: Electric — 3.8% |
||||||||
| 85,000 | ALLETE Inc. |
3,312,450 | ||||||
| 222,000 | American Electric Power Co. Inc. |
7,801,080 | ||||||
| 239,400 | DPL Inc. |
6,561,954 | ||||||
| 50,000 | Edison International |
1,829,500 | ||||||
| 220,000 | Electric Power Development Co. Ltd. |
6,776,148 | ||||||
| 796,000 | Great Plains Energy Inc. |
15,935,920 | ||||||
| 275,400 | Integrys Energy Group Inc. |
13,910,454 | ||||||
| 100,000 | Pepco Holdings Inc. |
1,865,000 | ||||||
| 212,000 | Pinnacle West Capital Corp. |
9,071,480 | ||||||
See accompanying notes to schedule of investments.
2
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
| Market | ||||||||
| Shares | Value | |||||||
COMMON STOCKS (Continued) |
||||||||
Energy and Utilities: Electric (Continued) |
||||||||
| 100,000 | Southern Co. |
$ | 3,811,000 | |||||
| 183,000 | UniSource Energy Corp. |
6,611,790 | ||||||
| 77,486,776 | ||||||||
Energy and Utilities: Integrated — 9.6% |
||||||||
| 12,000 | Alliant Energy Corp. |
467,160 | ||||||
| 125,000 | Ameren Corp. |
3,508,750 | ||||||
| 50,000 | Avista Corp. |
1,156,500 | ||||||
| 55,000 | Black Hills Corp. |
1,839,200 | ||||||
| 40,000 | CH Energy Group Inc. |
2,021,600 | ||||||
| 108,000 | Chubu Electric Power Co. Inc. |
2,402,020 | ||||||
| 268,000 | CONSOL Energy Inc. |
14,372,840 | ||||||
| 176,000 | Consolidated Edison Inc. |
8,926,720 | ||||||
| 70,000 | Dominion Resources Inc. |
3,129,000 | ||||||
| 150,000 | Duke Energy Corp. |
2,722,500 | ||||||
| 400,000 | Edison SpA |
447,266 | ||||||
| 500,000 | El Paso Corp. |
9,000,000 | ||||||
| 126,000 | Endesa SA |
3,904,354 | ||||||
| 450,000 | Enel SpA |
2,836,654 | ||||||
| 50,000 | Exelon Corp. |
2,062,000 | ||||||
| 110,000 | FirstEnergy Corp. |
4,079,900 | ||||||
| 95,000 | Hawaiian Electric Industries Inc. |
2,356,000 | ||||||
| 250,000 | Hera SpA |
598,410 | ||||||
| 121,500 | Hokkaido Electric Power Co. Inc. |
2,356,089 | ||||||
| 121,500 | Hokuriku Electric Power Co. |
2,751,936 | ||||||
| 90,000 | Iberdrola SA, ADR |
3,121,200 | ||||||
| 100,000 | Korea Electric Power Corp., ADR† |
1,224,000 | ||||||
| 121,500 | Kyushu Electric Power Co. Inc. |
2,373,617 | ||||||
| 65,000 | MGE Energy Inc. |
2,631,850 | ||||||
| 35,102 | National Grid plc, ADR |
1,686,300 | ||||||
| 250,000 | NextEra Energy Inc. |
13,780,000 | ||||||
| 230,000 | NiSource Inc. |
4,411,400 | ||||||
| 491,700 | NSTAR |
22,750,959 | ||||||
| 387,600 | OGE Energy Corp. |
19,597,056 | ||||||
| 25,000 | Ormat Technologies Inc. |
633,250 | ||||||
| 297,000 | Progress Energy Inc. |
13,703,580 | ||||||
| 160,000 | Public Service Enterprise Group Inc. |
5,041,600 | ||||||
| 121,500 | Shikoku Electric Power Co. Inc. |
3,305,536 | ||||||
| 121,500 | The Chugoku Electric Power Co. Inc. |
2,246,538 | ||||||
| 50,000 | The Empire District Electric Co. |
1,089,500 | ||||||
| 121,500 | The Kansai Electric Power Co. Inc. |
2,645,305 | ||||||
| 90,000 | The Tokyo Electric Power Co. Inc. |
504,208 | ||||||
| 139,000 | Tohoku Electric Power Co. Inc. |
2,347,860 | ||||||
| 168,000 | Vectren Corp. |
4,569,600 | ||||||
| 345,000 | Westar
Energy Inc. |
9,114,900 | ||||||
| 150,000 | Wisconsin Energy Corp. |
4,575,000 | ||||||
| 150,000 | Xcel Energy
Inc. |
3,583,500 | ||||||
| 195,875,658 | ||||||||
Energy and Utilities: Natural Gas — 4.6% |
||||||||
| 11,000 | Atmos Energy Corp. |
375,100 | ||||||
| 25,000 | Delta Natural Gas Co. Inc. |
788,250 | ||||||
| 160,356 | GDF Suez, Strips |
227 | ||||||
| 20,000 | Kinder Morgan Energy Partners LP |
1,481,800 | ||||||
| 424,000 | National Fuel Gas Co. |
31,376,000 | ||||||
| 159,000 | Nicor Inc. |
8,538,300 | ||||||
| 200,000 | ONEOK Inc. |
13,376,000 | ||||||
| 173,600 | Sempra Energy |
9,287,600 | ||||||
| 30,000 | South Jersey Industries Inc. |
1,679,100 | ||||||
| 130,000 | Southern Union Co. |
3,720,600 | ||||||
| 159,000 | Southwest Gas Corp. |
6,196,230 | ||||||
| 610,000 | Spectra Energy Corp. |
16,579,800 | ||||||
| 42,000 | The Laclede Group Inc. |
1,600,200 | ||||||
| 94,999,207 | ||||||||
Energy and Utilities: Oil — 11.1% |
||||||||
| 62,000 | Anadarko Petroleum Corp. |
5,079,040 | ||||||
| 36,000 | Apache Corp. |
4,713,120 | ||||||
| 44,000 | BG Group plc, ADR |
5,495,600 | ||||||
| 124,000 | BP plc, ADR |
5,473,360 | ||||||
| 90,000 | Chesapeake Energy Corp. |
3,016,800 | ||||||
| 200,000 | Chevron Corp. |
21,486,000 | ||||||
| 344,000 | ConocoPhillips |
27,471,840 | ||||||
| 65,000 | Devon Energy Corp. |
5,965,050 | ||||||
| 141,000 | Eni SpA, ADR |
6,927,330 | ||||||
| 205,000 | Exxon Mobil Corp. |
17,246,650 | ||||||
| 36,000 | Hess Corp. |
3,067,560 | ||||||
| 465,400 | Marathon Oil Corp. |
24,810,474 | ||||||
| 114,000 | Murphy Oil Corp. |
8,369,880 | ||||||
| 230,100 | Occidental Petroleum Corp. |
24,043,149 | ||||||
| 2,000 | PetroChina Co. Ltd., ADR |
304,500 | ||||||
| 77,000 | Petroleo Brasileiro SA, ADR |
3,113,110 | ||||||
| 220,000 | Repsol YPF SA, ADR |
7,579,000 | ||||||
| 220,000 | Royal Dutch Shell plc, Cl. A, ADR |
16,029,200 | ||||||
| 769,100 | Statoil ASA, ADR |
21,257,924 | ||||||
| 115,000 | Sunoco Inc. |
5,242,850 | ||||||
| 185,000 | Total SA, ADR |
11,279,450 | ||||||
| 227,971,887 | ||||||||
Energy and Utilities: Services — 3.8% |
||||||||
| 190,000 | ABB Ltd., ADR† |
4,596,100 | ||||||
| 74,000 | Cameron International Corp.† |
4,225,400 | ||||||
| 85,000 | Diamond Offshore Drilling Inc. |
6,604,500 | ||||||
| 512,600 | Halliburton Co. |
25,547,984 | ||||||
| 10,000 | Noble Corp. |
456,200 | ||||||
| 38,000 | Oceaneering
International Inc.† |
3,399,100 | ||||||
| 151,000 | Rowan
Companies Inc.† |
6,671,180 | ||||||
| 117,000 | Schlumberger Ltd. |
10,911,420 | ||||||
| 45,000 | Transocean Ltd.† |
3,507,750 | ||||||
See accompanying notes to schedule of investments.
3
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
| Market | ||||||||
| Shares | Value | |||||||
COMMON STOCKS (Continued) |
||||||||
Energy and Utilities: Services (Continued) |
||||||||
| 540,000 | Weatherford International Ltd.† |
$ | 12,204,000 | |||||
| 78,123,634 | ||||||||
Energy and Utilities: Water — 0.9% |
||||||||
| 11,000 | American States Water Co. |
394,460 | ||||||
| 429,000 | American Water Works Co. Inc. |
12,033,450 | ||||||
| 74,000 | Aqua America Inc. |
1,693,860 | ||||||
| 47,000 | Pennichuck Corp. |
1,339,030 | ||||||
| 90,000 | SJW Corp. |
2,083,500 | ||||||
| 12,000 | The York Water Co. |
208,920 | ||||||
| 25,000 | United Utilities Group plc, ADR |
476,250 | ||||||
| 18,229,470 | ||||||||
Entertainment — 1.1% |
||||||||
| 37,000 | Grupo Televisa SA, ADR† |
907,610 | ||||||
| 90,000 | Madison Square Garden Inc., Cl. A† |
2,429,100 | ||||||
| 195,000 | Take-Two Interactive Software Inc.† |
2,997,150 | ||||||
| 298,000 | Time Warner Inc. |
10,638,600 | ||||||
| 176,000 | Vivendi |
5,025,935 | ||||||
| 21,998,395 | ||||||||
Environmental Services — 0.8% |
||||||||
| 12,375 | Veolia Environnement |
384,779 | ||||||
| 406,000 | Waste Management Inc. |
15,160,040 | ||||||
| 15,544,819 | ||||||||
Equipment and Supplies — 1.5% |
||||||||
| 95,000 | CIRCOR International Inc. |
4,466,900 | ||||||
| 57,000 | Lufkin Industries Inc. |
5,327,790 | ||||||
| 65,000 | Mueller Industries Inc. |
2,380,300 | ||||||
| 460,000 | RPC Inc. |
11,647,200 | ||||||
| 154,000 | Tenaris SA, ADR |
7,616,840 | ||||||
| 31,439,030 | ||||||||
Financial Services — 12.0% |
||||||||
| 213,000 | Aflac Inc. |
11,242,140 | ||||||
| 80,000 | AllianceBernstein Holding LP |
1,744,000 | ||||||
| 460,200 | American Express Co. |
20,801,040 | ||||||
| 495,000 | Bank of America Corp. |
6,598,350 | ||||||
| 22,000 | BlackRock Inc. |
4,422,220 | ||||||
| 1,257,700 | Citigroup Inc.† |
5,559,034 | ||||||
| 23,000 | CME Group Inc. |
6,935,650 | ||||||
| 130,000 | Deutsche Bank AG |
7,679,100 | ||||||
| 390,000 | Discover Financial Services |
9,406,800 | ||||||
| 98,000 | Fidelity National Financial Inc., Cl. A |
1,384,740 | ||||||
| 205,000 | Fidelity National Information Services Inc. |
6,701,450 | ||||||
| 66,000 | HSBC Holdings plc, ADR |
3,418,800 | ||||||
| 135,000 | Invesco Ltd. |
3,450,600 | ||||||
| 550,000 | JPMorgan Chase & Co. |
25,355,000 | ||||||
| 314,000 | Legg Mason Inc. |
11,332,260 | ||||||
| 44,000 | M&T Bank Corp. |
3,892,680 | ||||||
| 103,000 | Moody’s Corp. |
3,492,730 | ||||||
| 120,000 | Morgan Stanley |
3,278,400 | ||||||
| 60,000 | National Australia Bank Ltd., ADR |
1,602,000 | ||||||
| 180,000 | New York Community Bancorp Inc. |
3,106,800 | ||||||
| 240,000 | NewAlliance Bancshares Inc. |
3,561,600 | ||||||
| 33,000 | Northern Trust Corp. |
1,674,750 | ||||||
| 222,000 | PNC Financial Services Group Inc. |
13,983,780 | ||||||
| 235,000 | SLM Corp.† |
3,595,500 | ||||||
| 60,000 | State Street Corp. |
2,696,400 | ||||||
| 147,000 | T. Rowe Price Group Inc. |
9,763,740 | ||||||
| 601,000 | The Bank of New York Mellon Corp. |
17,951,870 | ||||||
| 98,000 | The Blackstone Group LP |
1,752,240 | ||||||
| 276,300 | The Travelers Companies Inc. |
16,434,324 | ||||||
| 25,000 | U.S. Bancorp |
660,750 | ||||||
| 359,000 | Waddell & Reed Financial Inc., Cl. A |
14,578,990 | ||||||
| 554,000 | Wells Fargo & Co. |
17,561,800 | ||||||
| 15,000 | Willis Group Holdings plc |
605,400 | ||||||
| 246,224,938 | ||||||||
Food and Beverage — 10.1% |
||||||||
| 80,000 | Campbell Soup Co. |
2,648,800 | ||||||
| 350,000 | China Mengniu Dairy Co. Ltd. |
926,908 | ||||||
| 190,000 | ConAgra Foods Inc. |
4,512,500 | ||||||
| 60,000 | Constellation Brands Inc., Cl. A† |
1,216,800 | ||||||
| 300,082 | Danone |
19,603,015 | ||||||
| 1,600,000 | Davide Campari — Milano SpA |
10,825,090 | ||||||
| 270,000 | Dr Pepper Snapple Group Inc. |
10,033,200 | ||||||
| 532,000 | General Mills Inc. |
19,444,600 | ||||||
| 80,000 | H. J. Heinz Co. |
3,905,600 | ||||||
| 265,000 | ITO EN Ltd. |
4,616,314 | ||||||
| 330,000 | Kikkoman Corp. |
3,110,363 | ||||||
| 750,000 | Kraft Foods Inc., Cl. A |
23,520,000 | ||||||
| 64,000 | Molson Coors Brewing Co., Cl. B |
3,000,960 | ||||||
| 150,000 | Morinaga Milk Industry Co. Ltd. |
535,585 | ||||||
| 168,000 | NISSIN FOODS HOLDINGS CO. LTD. |
5,921,808 | ||||||
| 1,600,000 | Parmalat SpA |
5,360,392 | ||||||
| 339,450 | Parmalat SpA, GDR (a)(b) |
1,138,787 | ||||||
| 119,000 | PepsiCo Inc. |
7,664,790 | ||||||
| 62,000 | Pernod-Ricard SA |
5,790,369 | ||||||
| 19,319 | Remy Cointreau SA |
1,454,907 | ||||||
| 1,250,000 | Sara Lee Corp. |
22,087,500 | ||||||
| 346,000 | The Coca-Cola Co. |
22,957,100 | ||||||
| 335,000 | The Hershey Co. |
18,207,250 | ||||||
| 361,000 | YAKULT HONSHA Co. Ltd. |
9,226,809 | ||||||
| 207,709,447 | ||||||||
See accompanying notes to schedule of investments.
4
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
| Market | ||||||||
| Shares | Value | |||||||
COMMON STOCKS (Continued) |
||||||||
Health Care — 4.2% |
||||||||
| 45,000 | Abbott Laboratories |
$ | 2,207,250 | |||||
| 100,000 | Beckman Coulter Inc. |
8,307,000 | ||||||
| 197,000 | Bristol-Myers Squibb Co. |
5,206,710 | ||||||
| 10,000 | Cephalon Inc.† |
757,800 | ||||||
| 110,000 | Covidien plc |
5,713,400 | ||||||
| 125,000 | Eli Lilly & Co. |
4,396,250 | ||||||
| 200,000 | Genzyme Corp.† |
15,230,000 | ||||||
| 58,000 | Johnson & Johnson |
3,436,500 | ||||||
| 73,000 | Mead Johnson Nutrition Co. |
4,228,890 | ||||||
| 215,000 | Merck & Co. Inc. |
7,097,150 | ||||||
| 112,500 | Owens & Minor Inc. |
3,654,000 | ||||||
| 729,000 | Pfizer Inc. |
14,805,990 | ||||||
| 26,000 | Schiff Nutrition International Inc. |
236,860 | ||||||
| 40,000 | St. Jude Medical Inc. |
2,050,400 | ||||||
| 10,000 | UnitedHealth Group Inc. |
452,000 | ||||||
| 65,000 | Watson Pharmaceuticals Inc.† |
3,640,650 | ||||||
| 75,000 | Zimmer Holdings Inc.† |
4,539,750 | ||||||
| 85,960,600 | ||||||||
Hotels and Gaming — 0.3% |
||||||||
| 15,000 | Accor SA |
673,982 | ||||||
| 75,000 | Boyd Gaming Corp.† |
702,750 | ||||||
| 800,000 | Ladbrokes plc |
1,700,462 | ||||||
| 60,000 | Las Vegas Sands Corp.† |
2,533,200 | ||||||
| 5,610,394 | ||||||||
Machinery — 1.6% |
||||||||
| 210,000 | Bucyrus International Inc. |
19,204,500 | ||||||
| 157,000 | CNH Global NV† |
7,622,350 | ||||||
| 68,500 | Deere & Co. |
6,636,965 | ||||||
| 33,463,815 | ||||||||
Manufactured Housing and
Recreational Vehicles — 0.0% |
||||||||
| 5,396 | Skyline Corp. |
108,190 | ||||||
Metals and Mining — 1.2% |
||||||||
| 16,000 | Agnico-Eagle
Mines Ltd. |
1,061,600 | ||||||
| 300,000 | Alcoa Inc. |
5,295,000 | ||||||
| 20,000 | Alliance Holdings GP LP |
1,050,800 | ||||||
| 8,000 | BHP Billiton Ltd., ADR |
767,040 | ||||||
| 250,000 | Freeport-McMoRan Copper &
Gold Inc. |
13,887,500 | ||||||
| 25,000 | Peabody Energy Corp. |
1,799,000 | ||||||
| 23,860,940 | ||||||||
Paper and Forest Products — 0.6% |
||||||||
| 414,000 | International Paper Co. |
12,494,520 | ||||||
Publishing — 0.1% |
||||||||
| 590,000 | Il Sole 24 Ore SpA† |
1,103,710 | ||||||
Real Estate — 0.0% |
||||||||
| 18,000 | Brookfield Asset Management
Inc., Cl. A |
584,280 | ||||||
Retail — 2.6% |
||||||||
| 336,000 | CVS Caremark Corp. |
11,531,520 | ||||||
| 142,000 | Ingles Markets Inc., Cl. A |
2,813,020 | ||||||
| 105,000 | Macy’s Inc. |
2,547,300 | ||||||
| 336,000 | Safeway Inc. |
7,909,440 | ||||||
| 295,000 | Sally Beauty Holdings Inc.† |
4,132,950 | ||||||
| 93,000 | The Home Depot Inc. |
3,446,580 | ||||||
| 35,000 | Wal-Mart Stores Inc. |
1,821,750 | ||||||
| 338,000 | Walgreen Co. |
13,567,320 | ||||||
| 75,000 | Whole Foods Market Inc. |
4,942,500 | ||||||
| 52,712,380 | ||||||||
Specialty Chemicals — 2.6% |
||||||||
| 69,000 | Air Products & Chemicals Inc. |
6,222,420 | ||||||
| 6,000 | Airgas Inc. |
398,520 | ||||||
| 100,000 | Ashland Inc. |
5,776,000 | ||||||
| 175,000 | E. I. du Pont de Nemours and Co. |
9,619,750 | ||||||
| 380,000 | Ferro Corp.† |
6,304,200 | ||||||
| 100,000 | Olin Corp. |
2,292,000 | ||||||
| 124,000 | The Dow Chemical Co. |
4,681,000 | ||||||
| 140,225 | The Lubrizol Corp. |
18,784,541 | ||||||
| 54,078,431 | ||||||||
Telecommunications — 5.6% |
||||||||
| 548,000 | AT&T Inc. |
16,768,800 | ||||||
| 293,000 | BCE Inc. |
10,647,620 | ||||||
| 33,000 | Belgacom SA |
1,278,386 | ||||||
| 40,000 | (c) | Bell Aliant Inc. (a) |
1,107,375 | |||||
| 590,000 | Deutsche Telekom AG, ADR |
9,097,800 | ||||||
| 55,000 | France Telecom SA, ADR |
1,238,050 | ||||||
| 219,800 | Hellenic Telecommunications
Organization SA, ADR |
1,202,306 | ||||||
| 23,160 | Loral Space & Communications Inc.† |
1,796,058 | ||||||
| 160,000 | Portugal Telecom SGPS SA |
1,846,660 | ||||||
| 1,750,000 | Sprint Nextel Corp.† |
8,120,000 | ||||||
| 45,000 | Telefonica SA, ADR |
1,134,900 | ||||||
| 165,000 | Telefonos de Mexico SAB de CV,
Cl. L, ADR |
3,012,900 | ||||||
| 110,000 | Telekom Austria AG |
1,608,798 | ||||||
| 48,000 | Telephone & Data Systems Inc. |
1,617,600 | ||||||
| 85,000 | Telephone & Data Systems Inc.,
Special |
2,509,200 | ||||||
| 120,000 | Telstra Corp. Ltd., ADR |
1,732,800 | ||||||
| 75,000 | TELUS Corp., Non-Voting |
3,636,750 | ||||||
See accompanying notes to schedule of investments.
5
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
| Market | ||||||||
| Shares | Value | |||||||
COMMON STOCKS (Continued) |
||||||||
Telecommunications (Continued) |
||||||||
| 1,000,000 | Verizon Communications Inc. |
$ | 38,540,000 | |||||
| 40,000 | VimpelCom Ltd., ADR |
564,800 | ||||||
| 269,000 | Vodafone Group plc, ADR |
7,733,750 | ||||||
| 115,194,553 | ||||||||
Transportation — 0.5% |
||||||||
| 250,000 | GATX Corp. |
9,665,000 | ||||||
| 20,000 | Kansas City Southern† |
1,089,000 | ||||||
| 10,754,000 | ||||||||
Wireless Communications — 0.3% |
||||||||
| 120,000 | United States Cellular Corp.† |
6,178,800 | ||||||
TOTAL COMMON STOCKS |
1,948,346,696 | |||||||
CONVERTIBLE PREFERRED STOCKS — 0.8% |
||||||||
Broadcasting — 0.0% |
||||||||
| 13,888 | Emmis Communications Corp.,
6.250% Cv. Pfd., Ser. A† |
229,083 | ||||||
Building and Construction — 0.0% |
||||||||
| 200 | Fleetwood Capital Trust,
6.000% Cv. Pfd. (d) |
0 | ||||||
Energy and Utilities — 0.3% |
||||||||
| 129,000 | El Paso Energy Capital Trust I,
4.750% Cv. Pfd. |
5,708,250 | ||||||
Financial Services — 0.2% |
||||||||
| 1,500 | Doral Financial Corp.,
4.750% Cv. Pfd.† |
184,454 | ||||||
| 74,000 | Newell Financial Trust I,
5.250% Cv. Pfd. |
3,367,000 | ||||||
| 3,551,454 | ||||||||
Telecommunications — 0.3% |
||||||||
| 55,000 | Cincinnati Bell Inc.,
6.750% Cv. Pfd., Ser. B |
2,167,000 | ||||||
| 78,000 | Crown Castle International Corp.,
6.250% Cv. Pfd. |
4,812,600 | ||||||
| 6,979,600 | ||||||||
Transportation — 0.0% |
||||||||
| 1,500 | GATX Corp., $2.50 Cv. Pfd.,
Ser. A (d) |
289,950 | ||||||
TOTAL CONVERTIBLE
PREFERRED STOCKS |
16,758,337 | |||||||
WARRANTS — 0.0% |
||||||||
Food and Beverage — 0.0% |
||||||||
| 650 | Parmalat SpA, GDR,
expire 12/31/15† (a)(b)(d) |
899 | ||||||
| Principal | ||||||||
| Amount | ||||||||
CONVERTIBLE CORPORATE BONDS — 0.8% |
||||||||
Aerospace — 0.1% |
||||||||
| $ | 1,500,000 | GenCorp Inc., Sub. Deb. Cv.,
4.063%, 12/31/39 |
1,501,875 | |||||
Automotive: Parts and Accessories — 0.0% |
||||||||
| 500,000 | Standard Motor Products Inc.,
Sub. Deb. Cv.,
15.000%, 04/15/11 (d) |
510,750 | ||||||
Computer Hardware — 0.1% |
||||||||
| 3,000,000 | SanDisk Corp., Cv.,
1.000%, 05/15/13 |
2,958,750 | ||||||
Diversified Industrial — 0.5% |
||||||||
| 8,800,000 | Griffon Corp., Sub. Deb. Cv.,
4.000%, 01/15/17 (a) |
9,911,000 | ||||||
Financial Services — 0.0% |
||||||||
| 200,000 | Janus Capital Group Inc., Cv.,
3.250%, 07/15/14 |
241,000 | ||||||
Real Estate — 0.0% |
||||||||
| 450,000 | Palm Harbor Homes Inc., Cv.,
3.250%, 05/15/24† (d) |
47,250 | ||||||
Retail — 0.1% |
||||||||
| 5,000,000 | The Great Atlantic &
Pacific Tea Co. Inc., Cv.,
5.125%, 06/15/11† |
1,700,000 | ||||||
TOTAL CONVERTIBLE
CORPORATE BONDS |
16,870,625 | |||||||
U.S. GOVERNMENT OBLIGATIONS — 3.2% |
||||||||
| 66,131,000 | U.S. Treasury Bills,
0.095% to 0.210%††,
04/21/11 to 09/15/11 |
66,112,761 | ||||||
See accompanying notes to schedule of investments.
6
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
SCHEDULE OF INVESTMENTS (Continued)
March 31, 2011 (Unaudited)
| Market | ||||
| Value | ||||
TOTAL INVESTMENTS — 100.0%
(Cost $1,617,353,343) |
$ | 2,048,089,318 | ||
Aggregate tax cost |
$ | 1,629,995,225 | ||
Gross unrealized appreciation |
$ | 480,641,603 | ||
Gross unrealized depreciation |
(62,547,510 | ) | ||
Net unrealized appreciation/depreciation . |
$ | 418,094,093 | ||
| % of | ||||||||
| Market | Market | |||||||
| Geographic Diversification | Value | Value | ||||||
North America |
82.9 | % | $ | 1,697,141,663 | ||||
Europe |
14.0 | 286,236,650 | ||||||
Japan |
2.5 | 51,120,137 | ||||||
Latin America |
0.3 | 7,033,620 | ||||||
Asia/Pacific |
0.3 | 6,557,248 | ||||||
Total Investments |
100.0 | % | $ | 2,048,089,318 | ||||
| (a) | 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 March 31, 2011, the market value of Rule 144A securities amounted to $12,158,061 or 0.59% of total investments. Except as noted in (b), these securities are liquid. | |
| (b) | At March 31, 2011, the Fund held investments in restricted and illiquid securities amounting to $1,139,686 or 0.06% of total investments, which were valued under methods approved by the Board of Trustees as follows: |
| 03/31/11 | ||||||||||||||||
| Acquisition | Acquisition | Acquisition | Carrying Value | |||||||||||||
| Shares | Issuer | Date | Cost | Per Unit | ||||||||||||
| 339,450 | Parmalat SpA, GDR |
12/02/03 | $ | 981,615 | $ | 3.3548 | ||||||||||
| 650 | Parmalat
SpA, GDR, Warrants expire 12/31/15 |
11/09/05 | — | 1.3831 | ||||||||||||
| (c) | Denoted in units. | |
| (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 March 31, 2011, the market value of fair valued securities amounted to $848,849 or 0.04% of total investments. | |
| † | Non-income producing security. | |
| †† | Represents annualized yield at date of purchase. | |
| ADR | American Depositary Receipt | |
| GDR | Global Depositary Receipt | |
| Strips | Regular income payment portion of security traded separately from the principal portion of the security. |
See accompanying notes to schedule of investments.
7
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)
The Fund’s financial statements are prepared in accordance with U.S. generally accepted
accounting principles (“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.
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). |
8
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
A financial instrument’s level within the fair value hierarchy is based on the lowest
level of any input both individually and in aggregate that is significant to the fair value
measurement. 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 by inputs used to value the Fund’s investments as of March 31, 2011 is as
follows:
| Valuation Inputs | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Quoted | Other Significant | Significant | Market Value | |||||||||||||
| Prices | Observable Inputs | Unobservable Inputs | at 3/31/11 | |||||||||||||
INVESTMENTS IN SECURITIES: |
||||||||||||||||
ASSETS (Market Value): |
||||||||||||||||
Common Stocks (a) |
$ | 1,948,346,696 | — | — | $ | 1,948,346,696 | ||||||||||
Convertible Preferred Stocks: |
||||||||||||||||
Building and Construction |
— | — | $ | 0 | 0 | |||||||||||
Transportation |
— | $ | 289,950 | — | 289,950 | |||||||||||
Other Industries (a) |
16,468,387 | — | — | 16,468,387 | ||||||||||||
Total Convertible Preferred Stocks |
16,468,387 | 289,950 | 0 | 16,758,337 | ||||||||||||
Warrants (a) |
— | 899 | — | 899 | ||||||||||||
Convertible Corporate Bonds |
1,700,000 | 15,123,375 | 47,250 | 16,870,625 | ||||||||||||
U.S. Government Obligations |
— | 66,112,761 | — | 66,112,761 | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES - ASSETS |
$ | 1,966,515,083 | $ | 81,526,985 | $ | 47,250 | $ | 2,048,089,318 | ||||||||
| (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 period
ended March 31, 2011.
The following table reconciles Level 3 investments for which significant unobservable inputs
were used to determine fair value:
| Net change | ||||||||||||||||||||||||||||||||||||||||
| in unrealized | ||||||||||||||||||||||||||||||||||||||||
| appreciation/ | ||||||||||||||||||||||||||||||||||||||||
| depreciation | ||||||||||||||||||||||||||||||||||||||||
| during the | ||||||||||||||||||||||||||||||||||||||||
| period on | ||||||||||||||||||||||||||||||||||||||||
| Change in | Level 3 | |||||||||||||||||||||||||||||||||||||||
| Balance | Accrued | Realized | unrealized | Transfers | Transfers | Balance | investments | |||||||||||||||||||||||||||||||||
| as of | discounts/ | gain/ | appreciation/ | into | out of | as of | held at | |||||||||||||||||||||||||||||||||
| 12/31/10 | (premiums) | (loss) | depreciation | Purchases | Sales | Level 3† | Level 3† | 3/31/11 | 3/31/11 | |||||||||||||||||||||||||||||||
INVESTMENTS IN SECURITIES: |
||||||||||||||||||||||||||||||||||||||||
ASSETS (Market Value): |
||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stocks: |
||||||||||||||||||||||||||||||||||||||||
Building and Construction |
$ | 0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0 | $ | — | ||||||||||||||||||||
Convertible Corporate Bonds |
1,575,000 | — | — | (36,000 | ) | — | — | 83,250 | (1,575,000 | ) | 47,250 | (36,000 | ) | |||||||||||||||||||||||||||
TOTAL INVESTMENTS
IN SECURITIES |
$ | 1,575,000 | $ | — | $ | — | $ | (36,000 | ) | $ | — | $ | — | $ | 83,250 | $ | (1,575,000 | ) | $ | 47,250 | $ | (36,000 | ) | |||||||||||||||||
| † | The Fund’s policy is to recognize transfers into and transfers out of Level 3 as of the beginning of the reporting period. |
9
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
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 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 March 31, 2011, refer to the Schedule of Investments.
Derivative Financial Instruments. The Fund may engage in various portfolio investment strategies by
investing in a number of derivative financial instruments for the purposes of achieving additional
return or 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, or protecting the value of its portfolio against uncertainty in the level of future
currency exchange rates. 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.
10
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
The Fund’s derivative contracts held at March 31, 2011, 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 for 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) 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
period ended March 31, 2011, the Fund held no investments in options.
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 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. During the period ended March 31, 2011, the Fund held no investments in
interest rate swap agreements or equity contracts for difference swap agreements.
11
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
NOTES TO SCHEDULE OF INVESTMENTS (Continued) (Unaudited)
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 period ended March 31, 2011, the Fund held no
investments in futures contracts.
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
period ended March 31, 2011, the Fund held no investments in forward foreign exchange contracts.
Tax Information. The Fund intends to continue to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended.
At December 31, 2010, the Fund had net capital loss carryforwards for federal income tax
purposes of $152,531,605, 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
$104,827,291 is available through 2017; and $25,259,031 is available through 2018.
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, 2010, the Fund had deferred capital
losses of $2,356,693 and currency losses of $476.
12
AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLANS
AND VOLUNTARY CASH PURCHASE PLANS
Enrollment in the Plan
It is the policy of The Gabelli Dividend & Income Trust (the “Fund”) to automatically reinvest
dividends payable to common shareholders. As a “registered” shareholder you automatically become a
participant in the Fund’s Automatic Dividend Reinvestment Plan (the “Plan”). The Plan authorizes
the Fund to credit common shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a premium to net asset
value. All distributions to shareholders whose shares are registered in their own names will be
automatically reinvested pursuant to the Plan in additional shares of the Fund. Plan participants
may send their common shares certificates to Computershare Trust Company, N.A. (“Computershare”) to
be held in their dividend reinvestment account. Registered shareholders wishing to receive their
distributions in cash must submit this request in writing to:
The Gabelli Dividend & Income Trust
c/o Computershare
P.O. Box 43010
Providence, RI 02940—3010
c/o Computershare
P.O. Box 43010
Providence, RI 02940—3010
Shareholders requesting this cash election must include the shareholder’s name and address as
they appear on the share certificate. Shareholders with additional questions regarding the Plan or
requesting a copy of the terms of the Plan, may contact Computershare at (800) 336-6983.
If your shares are held in the name of a broker, bank, or nominee, you should contact such
institution. If such institution is not participating in the Plan, your account will be credited
with a cash dividend. In order to participate in the Plan through such institution, it may be
necessary for you to have your shares taken out of “street name” and re-registered in your own
name. Once registered in your own name your distributions will be automatically reinvested. Certain
brokers participate in the Plan. Shareholders holding shares in “street name” at participating
institutions will have dividends automatically reinvested. Shareholders wishing a cash dividend at
such institution must contact their broker to make this change.
The number of shares of common shares distributed to participants in the Plan in lieu of cash
dividends is determined in the following manner. Under the Plan, whenever the market price of the
Fund’s common shares is equal to or exceeds net asset value at the time shares are valued for
purposes of determining the number of shares equivalent to the cash dividends or capital gains
distribution, participants are issued shares of common shares valued at the greater of (i) the net
asset value as most recently determined or (ii) 95% of the then current market price of the Fund’s
common shares. The valuation date is the dividend or distribution payment date or, if that date is
not a New York Stock Exchange (“NYSE”) trading day, the next trading day. If the net asset value of
the common shares at the time of valuation exceeds the market price of the common shares,
participants will receive shares from the Fund valued at market price. If the Fund should declare a
dividend or capital gains distribution payable only in cash, Computershare will buy shares of
common shares in the open market, or on the NYSE or elsewhere, for the participants’ accounts,
except that Computershare will endeavor to terminate purchases in the open market and cause the
Fund to issue shares at net asset value if, following the commencement of such purchases, the
market value of the common shares exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will not relieve
participants of any income tax which may be payable on such distributions. A participant in the
Plan will be treated for federal income tax purposes as having received, on a dividend payment
date, a dividend or distribution in an amount equal to the cash the participant could have received
instead of shares.
13
Voluntary Cash Purchase Plan
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders to increase their
investment in the Fund. In order to participate in the Voluntary Cash Purchase Plan, shareholders
must have their shares registered in their own name.
Participants in the Voluntary Cash Purchase Plan have the option of making additional cash
payments to Computershare for investments in the Fund’s common shares at the then current market
price. Shareholders may send an amount from $250 to $10,000. Computershare will use these funds to
purchase shares in the open market on or about the 1st and 15th of each month. Computershare will
charge each shareholder who participates $0.75, plus a pro rata share of the brokerage commissions.
Brokerage charges for such purchases are expected to be less than the usual brokerage charge for
such transactions. It is suggested that any voluntary cash payments be sent to Computershare, P.O.
Box 43010, Providence, RI 02940—3010 such that Computershare receives such payments approximately
10 days before the 1st and 15th of the month. Funds not received at least five days before the
investment date shall be held for investment until the next purchase date. A payment may be
withdrawn without charge if notice is received by Computershare at least 48 hours before such
payment is to be invested.
Shareholders wishing to liquidate shares held at Computershare must do so in writing or by
telephone. Please submit your request to the above mentioned address or telephone number. Include
in your request your name, address, and account number. The cost to liquidate shares is $2.50 per
transaction as well as the brokerage commission incurred. Brokerage charges are expected to be less
than the usual brokerage charge for such transactions.
For more information regarding the Automatic Dividend Reinvestment Plan and Voluntary Cash
Purchase Plan, brochures are available by calling (914) 921-5070 or by writing directly to the
Fund.
The Fund reserves the right to amend or terminate the Plan as applied to any voluntary cash
payments made and any dividend or distribution paid subsequent to written notice of the change sent
to the members of the Plan at least 90 days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by Computershare on at least 90 days
written notice to participants in the Plan.
14
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 |
Officers | |||
Mario J. Gabelli, CFA |
Bruce N. Alpert | |||
Chairman & Chief Executive Officer, |
President | |||
GAMCO Investors, Inc. |
||||
| Carter W. Austin | ||||
Anthony J. Colavita |
Vice President | |||
President, |
||||
Anthony J. Colavita, P.C. |
Peter D. Goldstein | |||
| Chief Compliance Officer | ||||
James P. Conn |
||||
Former Managing Director & |
Laurissa M. Martire | |||
Chief Investment Officer, |
Vice President & Ombudsman | |||
Financial Security Assurance Holdings Ltd. |
||||
| Agnes Mullady | ||||
Mario d’Urso |
Treasurer & Secretary | |||
Former Italian Senator |
||||
Frank J. Fahrenkopf, Jr. |
Investment Adviser | |||
President & Chief Executive Officer, |
Gabelli Funds, LLC | |||
American Gaming Association |
One Corporate Center | |||
| Rye, New York 10580-1422 | ||||
Michael J. Melarkey |
||||
Attorney-at-Law, |
||||
Avansino, Melarkey, Knobel & Mulligan |
Custodian | |||
| State Street Bank and Trust Company | ||||
Salvatore M. Salibello |
||||
Certified Public Accountant, |
Counsel | |||
Salibello & Broder, LLP |
Skadden, Arps, Slate, Meagher & Flom LLP | |||
Edward T. Tokar |
Transfer Agent and Registrar | |||
Senior Managing Director, |
Computershare Trust Company, N.A. | |||
Beacon Trust Company |
||||
Anthonie C. van Ekris |
Stock Exchange Listing | |||
Chairman,
BALMAC International, Inc. |
||||||||||||||||
| Salvatore J. Zizza | Common | 5.875% Preferred |
6.00% Preferred |
|||||||||||||
Chairman, Zizza & Co., Ltd. |
NYSE--Symbol: | GDV | GDV PrA | GDV PrD | ||||||||||||
| Shares Outstanding: | 82,969,637 | 3,048,019 | 2,542,296 | |||||||||||||
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 NASDAQ
symbol for the Net Asset Value is “XGDVX.”
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.
| Item 2. | 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 last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 3. | Exhibits. |
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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
|
5/31/11 |
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
|
Date
|
5/31/11 |
By (Signature and Title)*
|
/s/ Agnes Mullady
|
Date
|
5/31/11 |
| * | Print the name and title of each signing officer under his or her signature. |