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

Rhea-AI Summary

Gabelli Equity Trust (NYSE:GAB) reaffirmed its 10% distribution policy and declared a $0.15 per share cash distribution payable December 19, 2025 to shareholders of record on December 12, 2025. The Fund said its 10% annual target is based on the average net asset value for the last day of the four preceding quarters; that 10% would equate to $0.54 using quarter-end NAVs of $5.24, $5.15, $5.41, $5.61. By declaring $0.15, the Board distributed $0.06 more than the quarterly amount implied by the policy. The Fund estimates 2025 distributions are ~6% net investment income, 51% net capital gains and 43% return of capital on a book basis; final tax components will be reported on Form 1099-DIV in early 2026.

Positive

• Board reaffirmed the Fund's 10% distribution policy
• Declared $0.15 per share payable Dec 19, 2025
• Board added $0.06 above policy-implied distribution level
• Estimated 51% of 2025 distributions from net capital gains

Negative

• Estimated 43% of 2025 distributions deemed return of capital
• Net investment income estimated at only 6% of 2025 distributions
• Distribution policy is subject to change by the Board
• Distributions may reduce shareholder cost basis if treated as return of capital

RYE, N.Y., Nov. 12, 2025 (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 19, 2025 to common stock shareholders of record on December 12, 2025.

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 $0.54 based on the ending net asset values per share as of December 31, 2024, March 31, 2025, June 30, 2025, and September 30, 2025 of $5.24, $5.15, $5.41, and $5.61, respectively. In declaring a distribution of $0.15 per share, the Board of Directors has chosen to distribute $0.06 greater than that called for by the distribution policy. The net asset value per share fluctuates daily.

The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the 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 ta4x 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 2025 would include approximately 6% from net investment income, 51% from net capital gains and 43% 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 2025 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 2025 distributions in early 2026 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:

Molly Marion
(914) 921-5681

About The Gabelli Equity Trust
The Gabelli Equity Trust Inc. is a diversified, closed-end management investment company with $2.1 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

Investor Relations Contact:
Molly Marion
(914) 921-5681
mmarion@gabelli.com

FAQ

What distribution did Gabelli Equity Trust (GAB) declare on November 12, 2025?

The Board declared a $0.15 per share cash distribution payable December 19, 2025 to holders of record December 12, 2025.

How does GAB's declared distribution relate to its 10% distribution policy?

The Fund reaffirmed its 10% annual policy and the Board chose to distribute $0.06 more than the policy-implied quarterly amount.

What are the estimated tax components of GAB's 2025 distributions?

Based on current records, 2025 distributions are estimated ~6% net investment income, 51% net capital gains, 43% return of capital (book basis).

Will the final tax composition of GAB's distributions change from the estimate?

Yes; the final determination will be made after year end and shareholders will receive Form 1099-DIV in early 2026.

How might a return of capital component affect GAB shareholders?

A return of capital typically is not taxable but reduces a shareholder's cost basis in their GAB shares.

Where can investors find updated distribution component notices for GAB?

Updated distribution component notices are provided to shareholders of record with each distribution and posted at www.gabelli.com.