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|
|Swedish Match AB||SWMA||1.50%|
|National Fuel Gas Co||NFG||1.40%|
|Kraft Foods, Inc||KFT||1.20%|
|Occidental Petroleum Corp||OXY||1.20%|
|Sara Lee Corporation||SLE||1.20%|
|JP Morgan Chase & Co||JPM||1.20%|
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%.
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.