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The Gabelli Dividend and Income Trust (NYSE:GDV) emphasizes total return, including capital appreciation and dividends. GDV is managed by a team led by Mario Gabelli. The fund invests in income and dividend producing assets. Normally at least 50% of the fund is invested in dividend paying equities. The fund takes a global approach, as it may invest up to 35% of total assets in non-U.S. securities.

GDV currently pays a monthly distribution of $0.07 per share which equates to $0.84 annually. The price is very attractive right now, as the fund trades at a 13% discount to NAV.

Gabelli and team primarily select large-cap value stocks for the fund. Currently more than 65% of assets are invested in large and giant-cap equities. 75% of assets are invested in domestic equities, 17% in foreign equities, and the remainder in other types of securities.

Top 10 Holdings

Name Symbol Percent of Assets
Verizon Communications VZ 1.90%
Swedish Match AB SWMA 1.50%
National Fuel Gas Co NFG 1.40%
Kraft Foods, Inc KFT 1.20%
ConocoPhillips COP 1.20%
Occidental Petroleum Corp OXY 1.20%
Sara Lee Corporation SLE 1.20%
JP Morgan Chase & Co JPM 1.20%
Coca-Cola Company KO 1.20%
Nstar NST 1.10%

Over the last year GDV has outperformed the SPDR S&P 500 Index fund (NYSEARCA:SPY), up almost 19% versus 12% for SPY. However, GDV suffered over the last five years, down 13%.


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When large-cap stocks begin to outperform again, and they will, GDV should be poised for growth. Gabelli has proven himself as an astute portfolio manager. As a member of the Barron's roundtable, his investment choices are highly regarded. With the opportunity to buy this CEF at a large discount to NAV, investors will likely be rewarded for years to come.

Source: Gabelli Dividend and Income Trust: A Discounted CEF Poised for Growth