Gabelli Dividend and Income Trust Announces Redemption

In what almost seems like a ‘return to normalcy’, CEF Gabelli Dividend and Income (GDV) has announced a partial redemption of their 5.875% perpetual preferred (GDV-A). The redemption is for 5/6/2020.

The company will redeem 50% of the outstanding shares–shares that have traded very nicely during the recent market drop.

The announcement can be read here.

The CEF is a relatively decent sized fund with over $2 billion in net assets (as of 12/31/2020) and this redemption of 1.542 million shares is relatively easy for the company.

This partial redemption may make the other half of the shares remaining outstanding a decent buy at around $25–of course they could announce redemption at any time.

8 thoughts on “Gabelli Dividend and Income Trust Announces Redemption”

  1. Boost88–You have no control over the redemptions….your broker will apportion and separately list those shares to be redeemed and do not be surprised if it is a bit more or less than one-half ‘on the nose’…A word of caution, do not attempt to do anything with those shares that U see apportioned for redemption, even if redemption is a fair time away. Bad things can happen and you may be required to buy them back; this happened to me quite a while ago and I doubt that this has changed. Of course, your broker will advise you on this better than I can.

  2. How does a half redemption work if you own the shares? Any control over if your shares are redeemed?

    Really enjoy the site and knowledge, thanks.

    1. Thanks Boost88. As the folks mentioned the broker will simple segregate about 1/2 your shares in the account–then they will disappear on the redemption date.

  3. Surprised it took so long though it is weird timing.
    I own several Gabelli’s under par. I suppose it’s mildly positive news for them.

    1. Martin–it is interesting that Gabelli has always – for a long time – be slow at redemptions–usually to my benefit as I have owned many, many issues over the years. I currently have maybe 10 of their issues–but not this one.

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