Gabelli Global Utility & Income Trust Continues Monthly Distributions, Declares Distributions of $0.10 per Share

Rhea-AI Summary

The Gabelli Global Utility & Income Trust (GLU) has announced the continuation of its monthly distribution policy, declaring cash distributions of $0.10 per share for July, August, and September 2025. The Fund maintains its initial distribution policy of paying 6% annually of the $20.00 IPO price. The 2025 distributions are expected to comprise approximately 17% from net investment income, 30% from net capital gains, and 53% return of capital. The Board of Trustees regularly reviews distribution levels considering the Fund's NAV and market conditions. Distributions will be paid on specific dates: July 24, August 22, and September 23, 2025, to shareholders of record on July 17, August 15, and September 16, respectively.

Positive

• Monthly distribution maintained at $0.10 per share, providing steady income for investors
• Consistent 6% annual distribution rate based on IPO price maintained
• 30% of distributions expected to come from net capital gains, indicating portfolio appreciation

Negative

• 53% of distributions expected to be return of capital, which reduces shareholder cost basis
• Only 17% of distributions come from net investment income, showing limited organic yield
• High return of capital percentage suggests distributions may not be fully supported by Fund earnings

Insights

Dividend Income Specialist

GLU maintains $0.10 monthly distributions for Q3 2025, with 53% classified as return of capital, potentially tax-advantageous for shareholders.

The Gabelli Global Utility & Income Trust (GLU) has maintained its monthly distribution rate of $0.10 per share for July through September 2025, continuing its long-standing distribution policy. This represents an annualized payout of $1.20 per share, which aligns with the fund's commitment to distribute at least 6% of its initial $20.00 IPO price.

Looking at the composition of GLU's 2025 distributions to date, investors should note the significant return of capital component at 53%, with only 17% coming from net investment income and 30% from capital gains. This composition matters for tax purposes, as return of capital distributions aren't immediately taxable but reduce shareholders' cost basis in the fund.

The high return of capital percentage suggests the fund's current distribution level may exceed its organic income generation, which could eventually impact NAV sustainability if this pattern continues long-term. The board's quarterly review process of the distribution policy indicates they're actively monitoring this balance.

For shareholders in higher tax brackets, the Medicare surcharge of 3.8% on investment income applies to distributions classified as dividend income or capital gains. However, the substantial return of capital component potentially creates tax efficiency for current shareholders, though this benefit must be weighed against the possible NAV erosion it might represent.

RYE, N.Y., May 14, 2025 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE American: GLU) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $0.10 per share for each of July, August, and September 2025.

Distribution Month	Record Date	Payable Date	Distribution Per Share
July	July 17, 2025	July 24, 2025	$0.10
August	August 15, 2025	August 22, 2025	$0.10
September	September 16, 2025	September 23, 2025	$0.10

Under the Fund’s initial distribution policy, the Fund has paid a minimum annual distribution of 6% of the initial public offering price of $20.00 per share (a distribution of $0.10 per share each month).

Each quarter, the Board of Trustees reviews the amount of any potential distribution from the income, realized capital gain, or capital available. 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. If necessary, the Fund will pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies. The Fund’s distribution policy is subject to modification by the Board of Trustees 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 17% from net investment income, 30% from net capital gains and 53% 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 monthly 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:

Adam Tokar
(914) 457-1079

About The Gabelli Global Utility & Income Trust
The Gabelli Global Utility & Income Trust is a diversified, closed-end management investment company with $124 million in total net assets whose primary investment objective is to seek a consistent level of after-tax total return for its investors with an emphasis on tax-advantaged dividend income under current tax law. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE American – GLU
CUSIP – 36242L105

Investor Relations Contact:
Adam Tokar
(914) 457-1079
atokar@gabelli.com

FAQ

What is GLU's monthly distribution amount for July-September 2025?

GLU declared monthly cash distributions of $0.10 per share for July, August, and September 2025.

What is the composition of GLU's 2025 distributions?

GLU's 2025 distributions comprise approximately 17% from net investment income, 30% from net capital gains, and 53% return of capital.

When are GLU's next distribution payment dates?

GLU will pay distributions on July 24, August 22, and September 23, 2025.

What is GLU's annual distribution rate based on IPO price?

GLU maintains a 6% annual distribution rate based on the initial public offering price of $20.00 per share.

How is the return of capital in GLU's distribution treated for tax purposes?

Return of capital is generally not taxable and is treated as a reduction in the shareholder's cost basis.