The Gabelli Dividend and Income Trust (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 (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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I am not long GDV common shares. However, I am long preferred shares of the trust (GDVPRD).
