The GDL Fund Declares Third Quarter Distribution of $0.12 Per Share

Rhea-AI Summary

The GDL Fund (NYSE:GDL) declared a third-quarter cash distribution of $0.12 per share, payable on September 23, 2026 to common shareholders of record on September 16, 2026. The Board will continue to review the distribution level based on net asset value and market conditions.

According to The GDL Fund, it typically pays annual distributions of realized net long-term capital gains and quarterly cash distributions of all or part of its investment company taxable income, and may at times distribute more than current-period income. On a 2026 book basis, distributions are currently estimated at approximately 10% from net investment income, 64% from net capital gains and 26% as return of capital.

Positive

• $0.12 per share Q3 2026 cash distribution declared, with record date September 16, 2026
• 2026 distributions estimated at 64% net capital gains and 10% net investment income on a book basis
• Fund maintains a policy of annual long-term capital gains and quarterly cash distributions to common shareholders

Negative

• Approximately 26% of 2026 distributions estimated as return of capital on a book basis
• Board may modify quarterly distribution rate and frequency at any time; no assurance of continuation
• Fund may distribute more than current-period earnings, creating potential future return-of-capital distributions

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

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RYE, N.Y., Aug. 12, 2026 (GLOBE NEWSWIRE) -- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) declared a $0.12 per share cash distribution payable on September 23, 2026 to common shareholders of record on September 16, 2026.

The Board of Trustees will continue to monitor the Fund’s distribution level, taking into consideration the Fund’s net asset value and the financial market environment. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

The Fund makes annual distributions of its realized net long-term capital gains and quarterly cash distributions of all or a portion of its investment company taxable income to common shareholders. A portion of the distribution may be a return of capital and various factors will affect the level of the Fund’s income, such as its asset mix and use of merger arbitrage strategies. To permit the Fund to maintain more stable distributions, the Fund may distribute more than the entire amount of income earned in a particular period. Because the Fund’s current quarterly distributions are subject to modification by the Board of Trustees at any time and the Fund’s income will fluctuate, there can be no assurance that the Fund will pay distributions at a particular rate or frequency.

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.

Short-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. Long-term capital gains, if any, are distributed in the final distribution of 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 10% from net investment income, 64% from net capital gains and 26% 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:

Priscilla De Vargas
(914) 921-7761

About The GDL Fund
The GDL Fund is a diversified, closed-end management investment company with $119 million in total net assets whose investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GDL
CUSIP – 361570104

THE GDL FUND
Investor Relations Contact:
Priscilla De Vargas
(914) 921-7761
pdevargas@gabelli.com

FAQ

What distribution did The GDL Fund (NYSE:GDL) declare for the third quarter of 2026?

The GDL Fund declared a $0.12 per share cash distribution for the third quarter of 2026. According to The GDL Fund, it will be paid on September 23, 2026 to common shareholders of record as of September 16, 2026.

When is the record date and payment date for GDL's $0.12 Q3 2026 distribution?

The record date is September 16, 2026 and the payment date is September 23, 2026. According to The GDL Fund, shareholders of record on the record date will receive the $0.12 per share cash distribution on the stated payment date.

How were The GDL Fund (GDL) 2026 distributions allocated among income, gains, and return of capital?

Based on current 2026 accounting records, GDL’s distributions are estimated as 10% net investment income, 64% net capital gains, and 26% return of capital on a book basis. According to The GDL Fund, final 2026 tax components will be determined after year end.

Is the GDL third-quarter 2026 distribution considered a dividend yield or total return?

No, the $0.12 per share distribution should not be viewed as dividend yield or total return. According to The GDL Fund, shareholders should not infer investment performance from the distribution amount, as income and capital gains can fluctuate over time.

Can GDL's distributions include a return of capital and what does that mean for shareholders?

Yes, GDL’s distributions can include a return of capital, currently estimated at 26% in 2026 on a book basis. According to The GDL Fund, this generally reduces a shareholder’s cost basis and is typically not taxable until shares are sold.

How often does The GDL Fund (NYSE:GDL) pay distributions to common shareholders?

The GDL Fund pays quarterly cash distributions of all or part of its investment company taxable income and annual distributions of realized net long-term capital gains. According to The GDL Fund, the Board may change the distribution rate or frequency at any time.