The Gabelli Equity Trust (NYSE:GAB) has reaffirmed its 10% distribution policy and declared a quarterly cash distribution of $0.15 per share, payable on June 23, 2025, to shareholders of record on June 13, 2025. The distribution's preliminary composition for 2025 includes approximately 2% from net investment income, 21% from net capital gains, and 77% as return of capital. The Fund maintains a minimum annual distribution of 10% of average NAV or sufficient amounts to meet IRS requirements. The distribution is subject to federal income tax rates of up to 20% for long-term capital gains and qualified dividend income, plus a 3.8% Medicare surcharge for certain shareholders.
Il Gabelli Equity Trust (NYSE:GAB) ha confermato la sua politica di distribuzione del 10% e ha dichiarato una distribuzione trimestrale in contanti di 0,15 dollari per azione, pagabile il 23 giugno 2025 agli azionisti registrati al 13 giugno 2025. La composizione preliminare della distribuzione per il 2025 include circa il 2% da reddito netto da investimenti, il 21% da plusvalenze nette e il 77% come restituzione di capitale. Il Fondo mantiene una distribuzione annua minima del 10% del NAV medio o importi sufficienti a soddisfare i requisiti dell'IRS. La distribuzione è soggetta a imposte federali sul reddito fino al 20% per plusvalenze a lungo termine e dividendi qualificati, oltre a un sovrapprezzo Medicare del 3,8% per alcuni azionisti.
Gabelli Equity Trust (NYSE:GAB) ha reafirmado su política de distribución del 10% y ha declarado una distribución trimestral en efectivo de $0.15 por acción, pagadera el 23 de junio de 2025 a los accionistas registrados al 13 de junio de 2025. La composición preliminar de la distribución para 2025 incluye aproximadamente un 2% de ingresos netos por inversiones, 21% de ganancias netas de capital y 77% como retorno de capital. El Fondo mantiene una distribución anual mínima del 10% del NAV promedio o cantidades suficientes para cumplir con los requisitos del IRS. La distribución está sujeta a tasas federales de impuesto sobre la renta de hasta el 20% para ganancias de capital a largo plazo e ingresos por dividendos calificados, más un recargo de Medicare del 3.8% para ciertos accionistas.
Gabelli Equity Trust (NYSE:GAB)는 10% 배당 정책을 재확인하고 주당 0.15달러의 분기별 현금 배당을 선언했으며, 2025년 6월 13일 기준 주주에게 2025년 6월 23일에 지급될 예정입니다. 2025년 배당금의 예비 구성은 약 순투자소득 2%, 순자본이익 21%, 자본환급 77%로 이루어져 있습니다. 펀드는 평균 순자산가치(NAV)의 10% 또는 IRS 요건을 충족하는 충분한 금액의 최소 연간 배당을 유지합니다. 배당금은 장기 자본이득 및 적격 배당소득에 대해 최대 20%의 연방 소득세율과 일부 주주에게는 3.8%의 메디케어 추가 부담금이 적용됩니다.
Le Gabelli Equity Trust (NYSE:GAB) a réaffirmé sa politique de distribution de 10 % et a déclaré une distribution trimestrielle en espèces de 0,15 $ par action, payable le 23 juin 2025 aux actionnaires inscrits au 13 juin 2025. La composition préliminaire de la distribution pour 2025 comprend environ 2 % de revenus nets d'investissement, 21 % de plus-values nettes et 77 % en retour de capital. Le Fonds maintient une distribution annuelle minimale de 10 % de la valeur liquidative moyenne ou des montants suffisants pour répondre aux exigences de l'IRS. La distribution est soumise à un taux d'imposition fédéral pouvant aller jusqu'à 20 % pour les plus-values à long terme et les dividendes qualifiés, plus une surtaxe Medicare de 3,8 % pour certains actionnaires.
Der Gabelli Equity Trust (NYSE:GAB) hat seine 10%-Ausschüttungspolitik bestätigt und eine vierteljährliche Bardividende von 0,15 USD pro Aktie angekündigt, zahlbar am 23. Juni 2025 an die am 13. Juni 2025 eingetragenen Aktionäre. Die vorläufige Zusammensetzung der Ausschüttung für 2025 umfasst etwa 2% aus Nettoeinkünften aus Investitionen, 21% aus Nettokapitalgewinnen und 77% als Kapitalrückzahlung. Der Fonds hält eine Mindestjahresausschüttung von 10% des durchschnittlichen NAV oder ausreichenden Beträgen zur Erfüllung der IRS-Anforderungen aufrecht. Die Ausschüttung unterliegt Bundessteuersätzen von bis zu 20% für langfristige Kapitalgewinne und qualifizierte Dividenden sowie einem Medicare-Zuschlag von 3,8% für bestimmte Aktionäre.
Positive
Maintained consistent 10% distribution policy
21% of distribution comes from net capital gains
Regular quarterly distribution provides steady income stream to shareholders
Negative
77% of distribution classified as return of capital, indicating insufficient earnings to cover distributions
Only 2% of distribution comes from net investment income
Distribution policy subject to modification with no guarantee of continuation
Insights
Gabelli Equity Trust reaffirms 10% distribution policy with $0.15 quarterly dividend, notably comprised of 77% return of capital.
The Gabelli Equity Trust's declaration of a $0.15 per share distribution maintains its 10% distribution policy based on average NAV. This quarterly payment, scheduled for June 23, 2025, represents the Fund's commitment to distributing a minimum of 10% of average net asset value annually.
What's particularly noteworthy is the composition of this distribution. Based on current accounting records, approximately 77% of 2025 distributions are classified as return of capital, with only 21% from net capital gains and a mere 2% from net investment income. This substantial return of capital component essentially means shareholders are receiving their own investment back rather than actual earnings generated by the fund.
This distribution structure signals potential underlying performance concerns. The high return of capital percentage indicates the fund isn't generating sufficient earnings to cover its distributions naturally. While this maintains the appearance of a consistent yield that might attract income-focused investors, it's effectively depleting the capital base over time.
For investors, this has important tax implications. Return of capital isn't immediately taxable but reduces cost basis, potentially creating larger capital gains liability upon eventual sale. The relatively small portions coming from actual investment income (2%) and capital gains (21%) highlight that the fund's portfolio isn't generating substantial organic returns to support its distribution policy.
The Board's commitment to continue monitoring the distribution level against NAV and market conditions suggests they recognize the sustainability challenges of the current approach. Long-term investors should carefully evaluate whether this high return of capital distribution model aligns with their investment objectives or merely masks underlying performance issues.
RYE, N.Y., May 14, 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 June 23, 2025 to common stock shareholders of record on June 13, 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.
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 2025 would include approximately 2% from net investment income, 21% from net capital gains and 77% 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 $2.0 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: Molly Marion (914) 921-5681 mmarion@gabelli.com
FAQ
What is GAB's quarterly distribution amount for Q2 2025?
Gabelli Equity Trust (GAB) declared a quarterly cash distribution of $0.15 per share for Q2 2025.
When is GAB's Q2 2025 distribution payable?
The distribution is payable on June 23, 2025, to shareholders of record as of June 13, 2025.
What is the composition of GAB's 2025 distributions?
Based on current accounting records, GAB's 2025 distributions consist of approximately 2% from net investment income, 21% from net capital gains, and 77% as return of capital.
What is Gabelli Equity Trust's distribution policy?
GAB maintains a 10% distribution policy, paying a minimum annual distribution of 10% of the average net asset value or an amount sufficient to satisfy IRS requirements for regulated investment companies.
How are GAB's distributions taxed?
GAB's distributions may be taxed as long-term capital gains or qualified dividend income at a maximum federal rate of 20%, plus a 3.8% Medicare surcharge for eligible shareholders. Return of capital portions are generally not taxable.
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