Gabelli Healthcare & WellnessRx Trust Declares Fourth Quarter Distribution of $0.15 Per Share

Rhea-AI Summary

Gabelli Healthcare & WellnessRx Trust (NYSE: GRX) has declared a quarterly cash distribution of $0.15 per share, payable on December 20, 2024, to shareholders of record on December 13, 2024. The distribution composition is approximately 5% from net investment income, 84% from net capital gains, and 11% return of capital. The Board of Trustees reviews potential distributions quarterly, considering the Fund's net asset value and market conditions. The distribution policy may be modified or terminated at any time, and distributions might be subject to various tax treatments including long-term capital gains and qualified dividend income.

Positive

• 84% of distribution comes from net capital gains, indicating strong investment performance
• Maintaining consistent quarterly dividend distribution of $0.15 per share

Negative

• 11% of distribution represents return of capital, which reduces shareholder cost basis
• Only 5% of distribution comes from net investment income, showing low income generation

Insights

Financial Analyst

The quarterly distribution announcement of $0.15 per share maintains consistency with previous payouts, comprising a mix of income sources. The distribution breakdown shows 84% from net capital gains, 5% from net investment income and 11% return of capital. This composition suggests strong portfolio performance through realized gains, though the return of capital component indicates some distribution was not covered by earnings.

The fund's distribution strategy appears sustainable given the significant capital gains component, but investors should note that returns of capital reduce their cost basis. With a current market cap of $168.2 million, this distribution reflects the fund's focus on healthcare and wellness sectors while providing regular income to shareholders.

RYE, N.Y., Nov. 14, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Healthcare & Wellness^Rx Trust (NYSE: GRX) (the “Fund”) declared a $0.15 per share cash distribution payable on December 20, 2024 to common shareholders of record on December 13, 2024.

The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Trustees. In addition to the quarterly distributions, and in accordance with the minimum distribution requirements of the Internal Revenue Code for regulated investment companies, the Fund may pay an adjusting distribution in December which includes any additional income and net realized capital gains in excess of the quarterly distributions for that year.

Each quarter, the Board of Trustees reviews the amount of any potential distribution and 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 current financial market environment. The Fund’s distribution policy is subject to modification or termination 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 up 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 2024 would include approximately 5% from net investment income, 84% from net capital gains and 11% 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 2024 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 2024 distributions in early 2025 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:

Bethany Uhlein
(914) 921-5546

About The Gabelli Healthcare & Wellness^Rx Trust
The Gabelli Healthcare & Wellness^Rx Trust is a diversified, closed-end management investment company with $238 million 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: GRX
CUSIP – 36246K103

THE GABELLI HEALTHCARE & WELLNESS^Rx TRUST

Investor Relations Contact:
Bethany Uhlein
914.921.5546
buhlein@gabelli.com

FAQ

When is GRX's next dividend payment date?

GRX's next dividend payment date is December 20, 2024, for shareholders of record as of December 13, 2024.

How much is GRX's quarterly dividend payment?

GRX declared a quarterly cash distribution of $0.15 per share.

What is the composition of GRX's current distribution?

The distribution consists of 5% from net investment income, 84% from net capital gains, and 11% return of capital.

Are GRX's distributions subject to Medicare surcharge?

Yes, certain U.S. shareholders whose income exceeds specific thresholds will be required to pay a 3.8% Medicare surcharge on their net investment income, including GRX dividends.