Gabelli Equity Trust 10% Distribution Policy Reaffirmed and Declared Fourth Quarter Distribution of $0.15 Per Share

The declared payment distributes $0.04 per share more than the amount called for by the fund’s distribution policy.

Rhea-AI Summary

The Gabelli Equity Trust (NYSE: GAB) declared a fourth-quarter cash distribution of $0.15 per share, payable December 18, 2026. Shareholders of record on December 11, 2026 qualify. The board reaffirmed its policy targeting a minimum annual distribution of 10% of average net asset value, or enough to meet minimum tax-code distribution requirements. The declaration distributes $0.04 more than the policy calls for; the 10% calculation is $0.56 per share.

Available accounting records indicate that each distribution paid in 2026 would comprise approximately 5% net investment income, 26% net capital gains and 69% return of capital on a book basis. These estimates are not tax-reporting information. Final sources will be determined after year end and may differ. The distribution rate is not dividend yield or total return, and the payment amount does not establish investment performance.

Positive

• Minor pointThe declared distribution provides $0.04 per share more than the distribution policy calls for.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Each 2026 distribution paid would include approximately 69% return of capital on a book basis, an estimate.

News Explained

If the Fund’s earnings fall short of its distributions, the excess is treated as return of capital; the Fund says that amount is generally not taxable and reduces a shareholder’s cost basis.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RYE, N.Y., Nov. 11, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.15 per share cash distribution payable on December 18, 2026 to common stock shareholders of record on December 11, 2026.

The Fund intends to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The average net asset value of the Fund is based on the average net asset values as of the last day of the four preceding calendar quarters during the year. The net asset value per share fluctuates daily.

We note that 10% of the average net asset value of the Fund would be $0.56 based on the ending net asset values per share as of December 31, 2025, March 31, 2026, June 30, 2026, and September 30, 2026 of $5.59, $5.55, $5.94, and $5.47, respectively. In declaring a distribution of $0.15 per share, the Board of Directors has chosen to distribute $0.04 greater than that called for by the distribution policy.

Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or capital available. The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the current financial market environment. The Fund’s distribution policy is subject to modification by the Board of Directors at any time, and there can be no guarantee that the policy will continue. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both) for individuals, each subject to the maximum federal income tax rate for long term capital gains, which is currently 20% in taxable accounts for individuals (or less depending on an individual’s tax bracket). In addition, certain U.S. shareholders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare surcharge on their "net investment income", which includes dividends received from the Fund and capital gains from the sale or other disposition of shares of the Fund.

If the Fund does not generate sufficient earnings (dividends and interest income, less expenses, and realized net capital gain) equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s earnings would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original investment, it is generally not taxable and would be treated as a reduction in the shareholder’s cost basis.

Long-term capital gains, qualified dividend income, investment company taxable income, and return of capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year. Based on the accounting records of the Fund currently available, each of the distributions paid to common shareholders in 2026 would include approximately 5% from net investment income, 26% from net capital gains and 69% would be deemed a return of capital on a book basis. This does not represent information for tax reporting purposes. The estimated components of each distribution are updated and provided to shareholders of record in a notice accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2026 will be made after year end and can vary from the quarterly estimates. Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution. All individual shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2026 distributions in early 2027 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. For more information regarding the Fund’s distribution policy and other information about the Fund, call:

Laurissa Martire
(914) 921-5399

About The Gabelli Equity Trust

The Gabelli Equity Trust Inc. is a diversified, closed-end management investment company with $2.3 billion in total net assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GAB
CUSIP – 362397101

THE GABELLI EQUITY TRUST INC.
Investor Relations Contact:
Laurissa Martire
(914) 921-5399
lmartire@gabelli.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Gabelli Equity Trust pay its fourth-quarter 2026 distribution?

The $0.15 per share cash distribution is payable on December 18, 2026 to common shareholders of record on December 11, 2026.

How does Gabelli Equity Trust calculate its 10% distribution policy?

The policy uses the average net asset values at the end of the four preceding calendar quarters during the year. For this calculation, the quarter-end values were $5.59, $5.55, $5.94 and $5.47 per share, respectively, producing a 10% policy amount of $0.56 per share.

How will Gabelli Equity Trust shareholders learn the tax treatment of 2026 distributions?

Individual shareholders with taxable accounts will receive Form 1099-DIV in early 2027 detailing the components and tax treatment of all 2026 distributions. A return of capital generally reduces the shareholder’s cost basis and is generally not taxable; the current book-basis estimates are not tax-reporting information.