UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21423
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The Gabelli Dividend & Income Trust
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: December 31
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Date of reporting period: March 31, 2008
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
[LOGO]
THE GABELLI
DIVIDEND &
INCOME TRUST
THE GABELLI DIVIDEND & INCOME TRUST
First Quarter Report
March 31, 2008
TO OUR SHAREHOLDERS,
The Gabelli Dividend & Income Trust's (the "Fund") net asset value ("NAV")
total return was (11.3)% during the first quarter of 2008, compared with
declines of 9.4% and 6.9% for the Standard & Poor's ("S&P") 500 Index and the
Dow Jones Industrial Average, respectively. The total return for the Fund's
publicly traded shares was (12.5)% during the first quarter. On March 31, 2008,
the Fund's NAV per share was $20.61, while the price of the publicly traded
shares closed at $17.79 on the New York Stock Exchange.
Enclosed is the investment portfolio as of March 31, 2008.
COMPARATIVE RESULTS
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS THROUGH MARCH 31, 2008 (a)
-------------------------------------------------
Since
Inception
Quarter 1 Year 3 Year (11/28/03)
-------- ------- ------ ----------
GABELLI DIVIDEND & INCOME TRUST
NAV TOTAL RETURN (b) ............ (11.29)% (8.00)% 7.76% 8.45%
INVESTMENT TOTAL RETURN (c) ..... (12.53) (10.38) 7.46 4.41
S&P 500 Index ...................... (9.44) (5.08) 5.84 7.23
Dow Jones Industrial Average ....... (6.92) 1.57 7.75 7.79
Nasdaq Composite Index ............. (14.07) (5.89) 4.46 3.53
(a) RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS.
INVESTMENT RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE. WHEN SHARES ARE SOLD, THEY MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE
PERFORMANCE DATA PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE
INFORMATION AS OF THE MOST RECENT MONTH END. PERFORMANCE RETURNS FOR
PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED. INVESTORS SHOULD CAREFULLY
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES OF THE
FUND BEFORE INVESTING. THE DOW JONES INDUSTRIAL AVERAGE IS AN UNMANAGED
INDEX OF 30 LARGE CAPITALIZATION STOCKS. THE S&P 500 AND THE NASDAQ
COMPOSITE INDICES ARE UNMANAGED INDICATORS OF STOCK MARKET PERFORMANCE.
DIVIDENDS ARE CONSIDERED REINVESTED EXCEPT FOR THE NASDAQ COMPOSITE INDEX.
YOU CANNOT INVEST DIRECTLY IN AN INDEX.
(b) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN THE NAV PER
SHARE AND REINVESTMENT OF DISTRIBUTIONS AT NAV ON THE EX-DIVIDEND DATE AND
ARE NET OF EXPENSES. SINCE INCEPTION RETURN IS BASED ON AN INITIAL NAV OF
$19.06.
(c) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN CLOSING MARKET
VALUES ON THE NEW YORK STOCK EXCHANGE AND REINVESTMENT OF DISTRIBUTIONS.
SINCE INCEPTION RETURN IS BASED ON AN INITIAL OFFERING PRICE OF $20.00.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
We have separated the portfolio managers' commentary from the financial
statements and investment portfolio due to corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio managers' commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com.
--------------------------------------------------------------------------------
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS -- 92.7%
AEROSPACE -- 1.1%
12,000 Boeing Co. ...................................................................................... $ 892,440
10,000 Goodrich Corp. .................................................................................. 575,100
55,000 Kaman Corp. ..................................................................................... 1,555,950
100,000 Rockwell Automation Inc. ........................................................................ 5,742,000
2,000,000 Rolls-Royce Group plc+ .......................................................................... 15,996,191
179,200,000 Rolls-Royce Group plc, Cl. B .................................................................... 355,647
---------------
25,117,328
---------------
AGRICULTURE -- 0.6%
130,000 Archer-Daniels-Midland Co. ...................................................................... 5,350,800
210,000 UAP Holding Corp. ............................................................................... 8,051,400
---------------
13,402,200
---------------
AUTOMOTIVE -- 0.3%
20,000 Copart Inc.+ .................................................................................... 775,200
287,000 General Motors Corp. ............................................................................ 5,467,350
10,000 Navistar International Corp.+ ................................................................... 601,500
---------------
6,844,050
---------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.7%
386,000 Genuine Parts Co. ............................................................................... 15,524,920
---------------
BROADCASTING -- 0.6%
415,000 Clear Channel Communications Inc. ............................................................... 12,126,300
---------------
BUILDING AND CONSTRUCTION -- 0.0%
15,000 Layne Christensen Co.+ .......................................................................... 525,300
---------------
BUSINESS SERVICES -- 1.1%
3,000 Alliance Data Systems Corp.+ .................................................................... 142,530
300,000 ChoicePoint Inc.+ ............................................................................... 14,280,000
150,000 Diebold Inc. .................................................................................... 5,632,500
100,000 Intermec Inc.+ .................................................................................. 2,219,000
82,000 PHH Corp.+ ...................................................................................... 1,429,260
293,500 Trans-Lux Corp.+ (a) ............................................................................ 1,027,250
---------------
24,730,540
---------------
CABLE AND SATELLITE -- 1.9%
640,000 Cablevision Systems Corp., Cl. A+ ............................................................... 13,715,200
14,200 Cogeco Inc. ..................................................................................... 421,940
230,000 DISH Network Corp., Cl. A+ ...................................................................... 6,607,900
46,000 EchoStar Corp., Cl. A+ .......................................................................... 1,358,840
81,734 Liberty Global Inc., Cl. A+ ..................................................................... 2,785,495
34,318 Liberty Global Inc., Cl. C+ ..................................................................... 1,114,648
180,000 Rogers Communications Inc., Cl. B ............................................................... 6,465,600
335,000 The DIRECTV Group Inc.+ ......................................................................... 8,304,650
MARKET
SHARES VALUE
------------ ---------------
35,213 Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA ................................ $ 417,501
7,042 Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA, ADR ........................... 83,800
---------------
41,275,574
---------------
COMMUNICATIONS EQUIPMENT -- 0.0%
15,000 Thomas & Betts Corp.+ ........................................................................... 545,550
---------------
COMPUTER SOFTWARE AND SERVICES -- 1.2%
1,100,000 BEA Systems Inc.+ ............................................................................... 21,065,000
160,833 Metavante Technologies Inc.+ .................................................................... 3,215,052
20,000 Microsoft Corp. ................................................................................. 567,600
100,000 Yahoo! Inc.+ .................................................................................... 2,893,000
---------------
27,740,652
---------------
CONSUMER PRODUCTS -- 2.8%
230,000 Alberto-Culver Co. .............................................................................. 6,304,300
25,000 Altria Group Inc. ............................................................................... 555,000
90,000 Avon Products Inc. .............................................................................. 3,558,600
40,000 Eastman Kodak Co. ............................................................................... 706,800
50,000 Fortune Brands Inc. ............................................................................. 3,475,000
40,000 Hanesbrands Inc.+ ............................................................................... 1,168,000
34,000 Harman International Industries Inc. ............................................................ 1,480,360
130,000 Kimberly-Clark Corp. ............................................................................ 8,391,500
60,000 Mattel Inc. ..................................................................................... 1,194,000
25,000 Philip Morris International Inc.+ ............................................................... 1,264,500
175,000 Procter & Gamble Co. ............................................................................ 12,262,250
995,000 Swedish Match AB ................................................................................ 21,685,586
---------------
62,045,896
---------------
DIVERSIFIED INDUSTRIAL -- 3.6%
148,000 Bouygues SA ..................................................................................... 9,402,314
208,000 Cooper Industries Ltd., Cl. A ................................................................... 8,351,200
500,000 General Electric Co. ............................................................................ 18,505,000
275,000 Honeywell International Inc. .................................................................... 15,515,500
100,000 ITT Corp. ....................................................................................... 5,181,000
166,093 Owens-Illinois Inc.+ ............................................................................ 9,372,600
2,000 Pentair Inc. .................................................................................... 63,800
2,000 Textron Inc. .................................................................................... 110,840
1,051,000 Tomkins plc ..................................................................................... 3,728,467
205,000 Tyco International Ltd. ......................................................................... 9,030,250
131,000 WHX Corp.+ ...................................................................................... 343,875
---------------
79,604,846
---------------
ELECTRONICS -- 1.3%
1,075,000 Intel Corp. ..................................................................................... 22,768,500
190,000 Tyco Electronics Ltd. ........................................................................... 6,520,800
---------------
29,289,300
---------------
See accompanying notes to schedule of investments.
2
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES: ELECTRIC -- 4.6%
30,000 Allegheny Energy Inc. ........................................................................... $ 1,515,000
90,000 ALLETE Inc. ..................................................................................... 3,475,800
250,000 American Electric Power Co. Inc. ................................................................ 10,407,500
720 Brookfield Infrastructure Partners LP ........................................................... 12,204
425,000 DPL Inc. ........................................................................................ 10,897,000
20,000 Edison International ............................................................................ 980,400
273,000 Electric Power Development Co. Ltd. ............................................................. 9,832,163
220,000 FPL Group Inc. .................................................................................. 13,802,800
530,000 Great Plains Energy Inc. ........................................................................ 13,064,500
370,000 Integrys Energy Group Inc. ...................................................................... 17,256,800
120,000 Pepco Holdings Inc. ............................................................................. 2,966,400
240,000 Pinnacle West Capital Corp. ..................................................................... 8,419,200
100,000 Southern Co. .................................................................................... 3,561,000
265,000 Unisource Energy Corp. .......................................................................... 5,898,900
---------------
102,089,667
---------------
ENERGY AND UTILITIES: INTEGRATED -- 9.8%
12,000 Alliant Energy Corp. ............................................................................ 420,120
140,000 Ameren Corp. .................................................................................... 6,165,600
3,300,000 Aquila Inc.+ .................................................................................... 10,593,000
50,000 Avista Corp. .................................................................................... 978,000
15,000 Black Hills Corp. ............................................................................... 536,700
36,000 CH Energy Group Inc. ............................................................................ 1,400,400
108,000 Chubu Electric Power Co. Inc. ................................................................... 2,697,833
268,000 CONSOL Energy Inc. .............................................................................. 18,542,920
200,000 Consolidated Edison Inc. ........................................................................ 7,940,000
10,000 Dominion Resources Inc. ......................................................................... 408,400
200,000 Duke Energy Corp. ............................................................................... 3,570,000
430,000 Edison SpA ...................................................................................... 1,127,595
430,400 El Paso Corp. ................................................................................... 7,161,856
80,000 Endesa SA ....................................................................................... 4,195,703
300,000 Enel SpA ........................................................................................ 3,182,772
47,000 Enel SpA, ADR ................................................................................... 2,502,336
144,000 Energy East Corp. ............................................................................... 3,473,280
20,000 Exelon Corp. .................................................................................... 1,625,400
165,000 FirstEnergy Corp. ............................................................................... 11,322,300
150,000 Hawaiian Electric Industries Inc. ............................................................... 3,580,500
250,000 Hera SpA ........................................................................................ 1,008,430
121,500 Hokkaido Electric Power Co. Inc. ................................................................ 2,821,755
121,500 Hokuriku Electric Power Co. ..................................................................... 2,864,416
10,000 Iberdrola SA .................................................................................... 155,034
110,000 Iberdrola SA, ADR ............................................................................... 6,846,565
80,500 Korea Electric Power Corp., ADR ................................................................. 1,210,720
121,500 Kyushu Electric Power Co. Inc. .................................................................. 2,968,023
22,000 Maine & Maritimes Corp.+ ........................................................................ 611,600
80,000 MGE Energy Inc. ................................................................................. 2,724,800
35,102 National Grid plc, ADR .......................................................................... 2,454,683
255,000 NiSource Inc. ................................................................................... 4,396,200
MARKET
SHARES VALUE
------------ ---------------
600,000 NSTAR ........................................................................................... $ 18,258,000
440,000 OGE Energy Corp. ................................................................................ 13,714,800
29,000 Ormat Technologies Inc. ......................................................................... 1,247,290
320,000 Progress Energy Inc. ............................................................................ 13,344,000
300,000 Public Service Enterprise Group Inc. ............................................................ 12,057,000
121,500 Shikoku Electric Power Co. Inc. ................................................................. 3,614,040
15,000 TECO Energy Inc. ................................................................................ 239,250
121,500 The Chugoku Electric Power Co. Inc. ............................................................. 2,705,959
40,000 The Empire District Electric Co. ................................................................ 810,000
121,500 The Kansai Electric Power Co. Inc. .............................................................. 3,022,873
108,000 The Tokyo Electric Power Co. Inc. ............................................................... 2,887,440
121,500 Tohoku Electric Power Co. Inc. .................................................................. 2,968,023
205,000 Vectren Corp. ................................................................................... 5,500,150
470,000 Westar Energy Inc. .............................................................................. 10,701,900
85,000 Wisconsin Energy Corp. .......................................................................... 3,739,150
200,000 Xcel Energy Inc. ................................................................................ 3,990,000
---------------
218,286,816
---------------
ENERGY AND UTILITIES: NATURAL GAS -- 3.2%
8,000 AGL Resources Inc. .............................................................................. 274,560
50,000 Atmos Energy Corp. .............................................................................. 1,275,000
20,000 Delta Natural Gas Co. Inc. ...................................................................... 493,800
6,000 Energen Corp. ................................................................................... 373,800
2,000 EnergySouth Inc. ................................................................................ 104,380
20,000 Kinder Morgan Energy Partners LP ................................................................ 1,093,800
350,000 National Fuel Gas Co. ........................................................................... 16,523,500
210,000 Nicor Inc. ...................................................................................... 7,037,100
220,000 ONEOK Inc. ...................................................................................... 9,818,600
200,000 Sempra Energy ................................................................................... 10,656,000
30,000 South Jersey Industries Inc. .................................................................... 1,053,300
90,000 Southern Union Co. .............................................................................. 2,094,300
190,000 Southwest Gas Corp. ............................................................................. 5,312,400
600,000 Spectra Energy Corp. ............................................................................ 13,650,000
60,000 The Laclede Group Inc. .......................................................................... 2,137,800
---------------
71,898,340
---------------
ENERGY AND UTILITIES: OIL -- 12.7%
20,000 Anadarko Petroleum Corp. ........................................................................ 1,260,600
40,000 Apache Corp. .................................................................................... 4,832,800
46,900 BG Group plc, ADR ............................................................................... 5,439,073
160,000 BP plc, ADR ..................................................................................... 9,704,000
80,000 Cameron International Corp.+ .................................................................... 3,331,200
140,000 Chesapeake Energy Corp. ......................................................................... 6,461,000
300,000 Chevron Corp. ................................................................................... 25,608,000
1,000 Cimarex Energy Co. .............................................................................. 54,740
398,000 ConocoPhillips .................................................................................. 30,331,580
78,000 Devon Energy Corp. .............................................................................. 8,137,740
176,000 Eni SpA, ADR .................................................................................... 11,987,360
215,000 Exxon Mobil Corp. ............................................................................... 18,184,700
30,000 Hess Corp. ...................................................................................... 2,645,400
See accompanying notes to schedule of investments.
3
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
ENERGY AND UTILITIES: OIL (CONTINUED)
535,000 Marathon Oil Corp. .............................................................................. $ 24,396,000
145,000 Murphy Oil Corp. ................................................................................ 11,910,300
4,000 Nabors Industries Ltd.+ ......................................................................... 135,080
1,000 Niko Resources Ltd. ............................................................................. 81,105
10,000 Noble Corp. ..................................................................................... 496,700
335,000 Occidental Petroleum Corp. ...................................................................... 24,511,950
30,000 Oceaneering International Inc.+ ................................................................. 1,890,000
18,000 PetroChina Co. Ltd., ADR ........................................................................ 2,255,580
11,000 Petroleo Brasileiro SA, ADR ..................................................................... 1,123,210
275,000 Repsol YPF SA, ADR .............................................................................. 9,462,750
210,000 Rowan Companies Inc. ............................................................................ 8,647,800
200,000 Royal Dutch Shell plc, Cl. A, ADR ............................................................... 13,796,000
875,000 StatoilHydro ASA, ADR ........................................................................... 26,136,250
200,000 Sunoco Inc. ..................................................................................... 10,494,000
190,000 Total SA, ADR ................................................................................... 14,061,900
46,873 Transocean Inc.+ ................................................................................ 6,337,229
---------------
283,714,047
---------------
ENERGY AND UTILITIES: SERVICES -- 4.0%
120,000 ABB Ltd., ADR ................................................................................... 3,230,400
20,000 Baker Hughes Inc. ............................................................................... 1,370,000
235,000 Diamond Offshore Drilling Inc. .................................................................. 27,354,000
19,500 Exterran Holdings Inc.+ ......................................................................... 1,258,530
50,000 Grant Prideco Inc.+ ............................................................................. 2,461,000
625,000 Halliburton Co. ................................................................................. 24,581,250
120,000 Schlumberger Ltd. ............................................................................... 10,440,000
250,000 Weatherford International Ltd.+ ................................................................. 18,117,500
---------------
88,812,680
---------------
ENERGY AND UTILITIES: WATER -- 0.3%
11,000 American States Water Co. ....................................................................... 396,000
60,333 Aqua America Inc. ............................................................................... 1,133,054
6,000 Artesian Resources Corp., Cl. A ................................................................. 111,180
3,000 California Water Service Group .................................................................. 114,450
11,500 Connecticut Water Service Inc. .................................................................. 272,205
1,000 Consolidated Water Co. Ltd. ..................................................................... 22,030
6,000 Middlesex Water Co. ............................................................................. 108,960
58,000 Pennichuck Corp. ................................................................................ 1,339,800
82,000 SJW Corp. ....................................................................................... 2,344,380
16,800 Southwest Water Co. ............................................................................. 185,976
5,000 Suez SA ......................................................................................... 328,065
168,000 Suez SA, Strips+ ................................................................................ 2,652
36,000 United Utilities plc, ADR ....................................................................... 988,114
9,000 York Water Co. .................................................................................. 134,910
---------------
7,481,776
---------------
MARKET
SHARES VALUE
------------ ---------------
ENTERTAINMENT -- 0.7%
8,000 Grupo Televisa SA, ADR .......................................................................... $ 193,920
142,600 Take-Two Interactive Software Inc.+ ............................................................. 3,639,152
350,000 Time Warner Inc. ................................................................................ 4,907,000
200,000 Vivendi ......................................................................................... 7,814,843
---------------
16,554,915
---------------
ENVIRONMENTAL SERVICES -- 0.7%
65,000 Allied Waste Industries Inc.+ ................................................................... 702,650
1,000 Hyflux Ltd. ..................................................................................... 2,201
12,375 Veolia Environnement ............................................................................ 862,759
420,000 Waste Management Inc. ........................................................................... 14,095,200
---------------
15,662,810
---------------
EQUIPMENT AND SUPPLIES -- 1.8%
110,000 CIRCOR International Inc. ....................................................................... 5,087,500
30,000 Lufkin Industries Inc. .......................................................................... 1,914,600
60,000 Mueller Industries Inc. ......................................................................... 1,731,000
420,000 RPC Inc. ........................................................................................ 6,379,800
300,000 Tenaris SA, ADR ................................................................................. 14,955,000
70,000 Trane Inc. ...................................................................................... 3,213,000
400,000 Xerox Corp. ..................................................................................... 5,988,000
---------------
39,268,900
---------------
FINANCIAL SERVICES -- 14.5%
70,000 Aflac Inc. ...................................................................................... 4,546,500
230,000 AllianceBernstein Holding LP .................................................................... 14,577,400
440,000 American Express Co. ............................................................................ 19,236,800
300,000 American International Group Inc. ............................................................... 12,975,000
11,641 AON Corp. ....................................................................................... 467,968
42,000 Astoria Financial Corp. ......................................................................... 1,140,720
425,000 Bank of America Corp. ........................................................................... 16,111,750
4,000 BlackRock Inc. .................................................................................. 816,720
65,000 Capital One Financial Corp. ..................................................................... 3,199,300
120,000 CIT Group Inc. .................................................................................. 1,422,000
690,000 Citigroup Inc. .................................................................................. 14,779,800
70,000 Deutsche Bank AG ................................................................................ 7,913,500
380,000 Discover Financial Services ..................................................................... 6,220,600
272,000 Federal National Mortgage Association ........................................................... 7,159,040
78,909 Fidelity National Financial Inc., Cl. A ......................................................... 1,446,402
61,496 Fidelity National Information Services Inc. ..................................................... 2,345,457
130,000 Fifth Third Bancorp ............................................................................. 2,719,600
70,000 Flushing Financial Corp. ........................................................................ 1,230,600
100,000 Freddie Mac ..................................................................................... 2,532,000
27,000 Hartford Financial Services Group Inc. .......................................................... 2,045,790
160,000 HSBC Holdings plc, ADR .......................................................................... 13,168,000
40,000 Hudson City Bancorp Inc. ........................................................................ 707,200
50,000 Invesco Ltd. .................................................................................... 1,218,000
470,000 JPMorgan Chase & Co. ............................................................................ 20,186,500
See accompanying notes to schedule of investments.
4
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
38,000 Legg Mason Inc. ................................................................................. $ 2,127,240
10,000 Lehman Brothers Holdings Inc. ................................................................... 376,400
180,000 Marshall & Ilsley Corp. ......................................................................... 4,176,000
272,000 Merrill Lynch & Co. Inc. ........................................................................ 11,081,280
150,000 Morgan Stanley .................................................................................. 6,855,000
297,495 National Australia Bank Ltd., ADR ............................................................... 8,187,776
200,000 New York Community Bancorp Inc. ................................................................. 3,644,000
270,000 NewAlliance Bancshares Inc. ..................................................................... 3,310,200
220,000 PNC Financial Services Group Inc. ............................................................... 14,425,400
180,000 Popular Inc. .................................................................................... 2,098,800
220,000 Regions Financial Corp. ......................................................................... 4,345,000
298,000 SLM Corp.+ ...................................................................................... 4,574,300
700,000 Sovereign Bancorp Inc. .......................................................................... 6,524,000
80,050 Sterling Bancorp ................................................................................ 1,243,177
120,000 T. Rowe Price Group Inc. ........................................................................ 6,000,000
40,000 The Allstate Corp. .............................................................................. 1,922,400
325,000 The Bank of New York Mellon Corp. ............................................................... 13,562,250
60,000 The Blackstone Group LP ......................................................................... 952,800
86,982 The Toronto-Dominion Bank ....................................................................... 5,336,346
290,000 The Travelers Companies Inc. .................................................................... 13,876,500
5,000 Unitrin Inc. .................................................................................... 176,700
30,974 Valley National Bancorp ......................................................................... 595,011
400,000 Wachovia Corp. .................................................................................. 10,800,000
400,000 Waddell & Reed Financial Inc., Cl. A ............................................................ 12,852,000
12,000 Webster Financial Corp. ......................................................................... 334,440
520,000 Wells Fargo & Co. ............................................................................... 15,132,000
90,000 Wilmington Trust Corp. .......................................................................... 2,799,000
177,000 Zions Bancorporation ............................................................................ 8,062,350
---------------
323,537,017
---------------
FOOD AND BEVERAGE -- 9.1%
180,000 Anheuser-Busch Companies Inc. ................................................................... 8,541,000
270,000 Cadbury Schweppes plc, ADR ...................................................................... 11,939,400
80,000 Campbell Soup Co. ............................................................................... 2,716,000
90,000 China Mengniu Dairy Co. Ltd. .................................................................... 262,507
220,000 ConAgra Foods Inc. .............................................................................. 5,269,000
950,000 Davide Campari-Milano SpA ....................................................................... 9,216,384
300,000 General Mills Inc. .............................................................................. 17,964,000
320,000 Groupe Danone ................................................................................... 28,614,641
100,000 H.J. Heinz Co. .................................................................................. 4,697,000
200,000 ITO EN Ltd. ..................................................................................... 3,539,326
50,000 ITO EN Ltd., Preference ......................................................................... 564,807
1,000 Kellogg Co. ..................................................................................... 52,560
170,000 Kikkoman Corp. .................................................................................. 2,089,185
400,000 Kraft Foods Inc., Cl. A ......................................................................... 12,404,000
160,000 Morinaga Milk Industry Co. Ltd. ................................................................. 489,567
300,000 Nissin Food Products Co. Ltd. ................................................................... 10,112,360
MARKET
SHARES VALUE
------------ ---------------
500,000 Parmalat SpA .................................................................................... $ 1,922,136
339,450 Parmalat SpA, GDR (b)(c) ........................................................................ 1,309,734
320,000 PepsiAmericas Inc. .............................................................................. 8,169,600
10,000 PepsiCo Inc. .................................................................................... 722,000
50,000 Pernod-Ricard SA ................................................................................ 5,143,588
5,000 Remy Cointreau SA ............................................................................... 336,275
1,200,000 Sara Lee Corp. .................................................................................. 16,776,000
300,000 The Coca-Cola Co. ............................................................................... 18,261,000
345,000 The Hershey Co. ................................................................................. 12,996,150
62,000 Wm. Wrigley Jr. Co. ............................................................................. 3,896,080
3,000 Wm. Wrigley Jr. Co., Cl. B ...................................................................... 186,600
470,000 YAKULT HONSHA Co. Ltd. .......................................................................... 14,569,623
---------------
202,760,523
---------------
HEALTH CARE -- 3.3%
25,000 Advanced Medical Optics Inc.+ ................................................................... 507,500
220,000 Boston Scientific Corp.+ ........................................................................ 2,831,400
115,000 Bristol-Myers Squibb Co. ........................................................................ 2,449,500
90,000 Covidien Ltd. ................................................................................... 3,982,500
170,000 Eli Lilly & Co. ................................................................................. 8,770,300
100,000 IMS Health Inc. ................................................................................. 2,101,000
50,000 Johnson & Johnson ............................................................................... 3,243,500
10,000 Medtronic Inc. .................................................................................. 483,700
200,000 Merck & Co. Inc. ................................................................................ 7,590,000
140,000 Owens & Minor Inc. .............................................................................. 5,507,600
1,090,000 Pfizer Inc. ..................................................................................... 22,813,700
35,000 Schiff Nutrition International Inc. ............................................................. 209,650
40,000 St. Jude Medical Inc.+ .......................................................................... 1,727,600
130,000 Wyeth ........................................................................................... 5,428,800
75,000 Zimmer Holdings Inc.+ ........................................................................... 5,839,500
---------------
73,486,250
---------------
HOTELS AND GAMING -- 0.4%
44,000 Boyd Gaming Corp. ............................................................................... 880,000
690,000 Ladbrokes plc ................................................................................... 4,262,260
20,000 Las Vegas Sands Corp.+ .......................................................................... 1,472,800
85,000 Pinnacle Entertainment Inc.+ .................................................................... 1,088,000
---------------
7,703,060
---------------
MACHINERY -- 0.4%
185,000 CNH Global NV ................................................................................... 9,625,550
---------------
MANUFACTURED HOUSING AND RECREATIONAL VEHICLES -- 0.0%
5,000 Skyline Corp. ................................................................................... 139,100
---------------
METALS AND MINING -- 0.9%
170,000 Alcoa Inc. ...................................................................................... 6,130,200
10,000 Alliance Holdings GP LP ......................................................................... 229,400
20,000 Arch Coal Inc. .................................................................................. 870,000
See accompanying notes to schedule of investments.
5
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
METALS AND MINING (CONTINUED)
8,000 BHP Billiton Ltd., ADR .......................................................................... $ 526,800
3,000 Fording Canadian Coal Trust ..................................................................... 156,600
98,000 Freeport-McMoRan Copper & Gold Inc. ............................................................. 9,429,560
10,000 Massey Energy Co. ............................................................................... 365,000
2,500 Patriot Coal Corp.+ ............................................................................. 117,425
25,000 Peabody Energy Corp. ............................................................................ 1,275,000
2,000 Rio Tinto plc, ADR .............................................................................. 823,680
3,000 Westmoreland Coal Co.+ .......................................................................... 40,740
---------------
19,964,405
---------------
PAPER AND FOREST PRODUCTS -- 0.2%
200,000 International Paper Co. ......................................................................... 5,440,000
---------------
PUBLISHING -- 0.6%
35,000 Idearc Inc. ..................................................................................... 127,400
2,000,000 Il Sole 24 Ore+ ................................................................................. 12,614,263
---------------
12,741,663
---------------
REAL ESTATE -- 0.0%
18,000 Brookfield Asset Management Inc., Cl. A ......................................................... 482,940
---------------
RETAIL -- 2.1%
210,000 CVS Caremark Corp. .............................................................................. 8,507,100
142,000 Ingles Markets Inc., Cl. A ...................................................................... 3,491,780
410,000 Safeway Inc. .................................................................................... 12,033,500
22,000 Saks Inc.+ ...................................................................................... 274,340
310,000 Sally Beauty Holdings Inc.+ ..................................................................... 2,139,000
85,000 SUPERVALU Inc. .................................................................................. 2,548,300
92,000 The Great Atlantic & Pacific Tea Co. Inc.+ ...................................................... 2,412,240
360,000 Walgreen Co. .................................................................................... 13,712,400
70,000 Whole Foods Market Inc. ......................................................................... 2,307,900
---------------
47,426,560
---------------
SPECIALTY CHEMICALS -- 1.4%
5,000 Arkema, ADR+ .................................................................................... 280,626
130,000 Ashland Inc. .................................................................................... 6,149,000
180,000 E.I. du Pont de Nemours & Co. ................................................................... 8,416,800
260,000 Ferro Corp. ..................................................................................... 3,863,600
100,000 Olin Corp. ...................................................................................... 1,976,000
260,000 The Dow Chemical Co. ............................................................................ 9,581,000
18,146 Tronox Inc., Cl. B .............................................................................. 70,769
---------------
30,337,795
---------------
TELECOMMUNICATIONS -- 6.0%
570,000 AT&T Inc. ....................................................................................... 21,831,000
498,000 BCE Inc. ........................................................................................ 16,797,540
SHARES/ MARKET
UNITS VALUE
------------ ---------------
47,125 Bell Aliant Regional Communications Income Fund (b)(d) .......................................... $ 1,413,279
71,000 BT Group plc, ADR ............................................................................... 3,060,100
20,000 CenturyTel Inc. ................................................................................. 664,800
50,000 Compania de Telecomunicaciones de Chile SA, ADR ................................................. 425,000
615,000 Deutsche Telekom AG, ADR ........................................................................ 10,196,700
25,000 Embarq Corp. .................................................................................... 1,002,500
55,000 France Telecom SA, ADR .......................................................................... 1,846,900
210,000 Hellenic Telecommunications Organization SA, ADR ................................................ 2,958,900
40,000 Neuf Cegetel .................................................................................... 2,227,309
240,000 Portugal Telecom SGPS SA ........................................................................ 2,788,715
200,000 Qwest Communications International Inc. ......................................................... 906,000
900,000 Sprint Nextel Corp. ............................................................................. 6,021,000
21,333 Telecom Corp. of New Zealand Ltd., ADR .......................................................... 317,222
200,000 Telecom Italia SpA, ADR ......................................................................... 4,178,000
26,000 Telefonica SA, ADR .............................................................................. 2,249,260
200,000 Telefonos de Mexico SAB de CV, Cl. L, ADR ....................................................... 7,520,000
130,000 Telstra Corp. Ltd., ADR ......................................................................... 2,610,751
76,100 TELUS Corp., Non-Voting, ADR .................................................................... 3,184,785
1,000,000 Verizon Communications Inc. ..................................................................... 36,450,000
190,000 Vodafone Group plc, ADR ......................................................................... 5,606,900
---------------
134,256,661
---------------
TRANSPORTATION -- 0.5%
3,000 Frontline Ltd. .................................................................................. 138,060
255,001 GATX Corp. ...................................................................................... 9,962,889
24,000 Golden Ocean Group Ltd. ......................................................................... 128,192
3,000 Ship Finance International Ltd. ................................................................. 78,840
25,000 Teekay Corp. .................................................................................... 1,061,750
---------------
11,369,731
---------------
WIRELESS COMMUNICATIONS -- 0.3%
5,000 Crown Castle International Corp.+ ............................................................... 172,450
108,000 United States Cellular Corp.+ ................................................................... 5,940,000
14,000 Vimpel-Communications, ADR ...................................................................... 418,460
---------------
6,530,910
---------------
TOTAL COMMON STOCKS ............................................................................. 2,068,344,572
---------------
CONVERTIBLE PREFERRED STOCKS -- 1.2%
AEROSPACE -- 0.1%
8,200 Northrop Grumman Corp., 7.000% Cv. Pfd., Ser. B ................................................. 1,156,364
---------------
See accompanying notes to schedule of investments.
6
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
MARKET
SHARES VALUE
------------ ---------------
CONVERTIBLE PREFERRED STOCKS (CONTINUED)
BROADCASTING -- 0.0%
20,460 Emmis Communications Corp., 6.250% Cv. Pfd., Ser. A ............................................. $ 537,280
---------------
BUILDING AND CONSTRUCTION -- 0.0%
200 Fleetwood Capital Trust, 6.000% Cv. Pfd. ........................................................ 5,537
---------------
DIVERSIFIED INDUSTRIAL -- 0.0%
45,000 Smurfit-Stone Container Corp., 7.000% Cv. Pfd., Ser. A .......................................... 918,000
---------------
ENERGY AND UTILITIES -- 0.3%
5,000 Chesapeake Energy Corp., 5.000% Cv. Pfd. (b) .................................................... 658,750
20,000 CMS Energy Corp., 4.500% Cv. Pfd., Ser. B ....................................................... 1,430,000
129,000 El Paso Energy Capital Trust I, 4.750% Cv. Pfd., Ser. C ......................................... 4,695,600
---------------
6,784,350
---------------
ENTERTAINMENT -- 0.0%
43,000 Six Flags Inc., 7.250% Cv. Pfd. ................................................................. 522,450
---------------
FINANCIAL SERVICES -- 0.3%
1,500 Doral Financial Corp., 4.750% Cv. Pfd. .......................................................... 183,842
120,000 Newell Financial Trust I, 5.250% Cv. Pfd. ....................................................... 5,445,000
---------------
5,628,842
---------------
HEALTH CARE -- 0.0%
12,000 Omnicare Inc., 4.000% Cv. Pfd., Ser. B .......................................................... 360,000
---------------
TELECOMMUNICATIONS -- 0.4%
50,000 Cincinnati Bell Inc., 6.750% Cv. Pfd., Ser. B ................................................... 2,120,000
120,000 Crown Castle International Corp., 6.250% Cv. Pfd. ............................................... 6,735,000
---------------
8,855,000
---------------
TRANSPORTATION -- 0.1%
1,500 GATX Corp., $2.50 Cv. Pfd. ...................................................................... 290,490
982 Kansas City Southern, 4.250% Cv. Pfd. ........................................................... 1,383,314
---------------
1,673,804
---------------
TOTAL CONVERTIBLE PREFERRED STOCKS .............................................................. 26,441,627
---------------
PRINCIPAL MARKET
AMOUNT VALUE
------------ ---------------
CONVERTIBLE CORPORATE BONDS -- 1.5%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.0%
$ 500,000 Standard Motor Products Inc., Sub. Deb. Cv., 6.750%, 07/15/09 ................................... $ 478,750
---------------
BROADCASTING -- 0.5%
100,000 LIN Television Corp., Sub. Deb. Cv., 2.500%, 05/15/33 ........................................... 98,875
13,000,000 Sinclair Broadcast Group Inc., Sub. Deb. Cv., 6.000%, 09/15/12 .................................. 11,602,500
---------------
11,701,375
---------------
COMMUNICATIONS EQUIPMENT -- 0.5%
10,000,000 Agere Systems Inc., Sub. Deb. Cv., 6.500%, 12/15/09 ............................................. 10,150,000
---------------
ENTERTAINMENT -- 0.1%
1,500,000 The Walt Disney Co., Cv., 2.125%, 04/15/23 ...................................................... 1,608,750
---------------
REAL ESTATE -- 0.0%
1,100,000 Palm Harbor Homes Inc., Cv., 3.250%, 05/15/24 ................................................... 576,125
---------------
RETAIL -- 0.2%
5,000,000 The Great Atlantic & Pacific Tea Co. Inc., Cv., 5.125%, 06/15/11 ................................ 4,962,500
---------------
TELECOMMUNICATIONS -- 0.2%
5,000,000 Nortel Networks Corp., Cv., 4.250%, 09/01/08 .................................................... 4,962,500
---------------
TOTAL CONVERTIBLE CORPORATE BONDS ............................................................... 34,440,000
---------------
SHARES
------------
WARRANTS -- 0.0%
FOOD AND BEVERAGE -- 0.0%
650 Parmalat SpA, GDR, expire 12/31/15+ (b)(c)(d) ................................................... 1,058
---------------
See accompanying notes to schedule of investments.
7
THE GABELLI DIVIDEND & INCOME TRUST
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008 (UNAUDITED)
PRINCIPAL MARKET
AMOUNT VALUE
------------ ---------------
U.S. GOVERNMENT OBLIGATIONS -- 4.6%
U.S. TREASURY BILLS -- 4.1%
$ 92,146,000 U.S. Treasury Bills,
0.446% to 3.186%++,
04/03/08 to 09/04/08 ......................................................................... $ 91,954,343
---------------
U.S. TREASURY NOTES -- 0.5%
11,360,000 U.S. Treasury Note,
5.000%, 07/31/08 ............................................................................. 11,497,570
---------------
TOTAL U.S. GOVERNMENT OBLIGATIONS ............................................................... 103,451,913
---------------
TOTAL INVESTMENTS -- 100.0%
(Cost $2,026,615,202) ....................................................................................... $ 2,232,679,170
===============
Aggregate book cost ............................................................................. $ 2,026,615,202
===============
Gross unrealized appreciation ................................................................... $ 383,837,894
Gross unrealized depreciation ................................................................... (177,773,926)
---------------
Net unrealized appreciation/depreciation ...................................................... $ 206,063,968
===============
----------
(a) Security considered an affiliated holding because the Fund owns at least
5% of its outstanding shares.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March
31, 2008, the market value of Rule 144A securities amounted to $3,382,821
or 0.15% of total investments. Except as noted in (c), these securities
are liquid.
(c) At March 31, 2008, the Fund held investments in restricted securities
amounting to $1,310,792 or 0.06% of total investments, which were valued
under methods approved by the Board of Trustees as follows:
03/31/08
ACQUISITION ACQUISITION ACQUISITION CARRYING VALUE
SHARES ISSUER DATE COST PER UNIT
------------ ---------------------------------------------------------------- ----------- ----------- --------------
339,450 Parmalat SpA, GDR .............................................. 12/02/03 $ 981,615 $ 3.8584
650 Parmalat SpA, GDR warrants expire 12/31/15 ..................... 11/09/05 -- 1.6277
(d) Security fair valued under procedures established by the Board of
Trustees. The procedures may include reviewing available financial
information about the company and reviewing the valuation of comparable
securities and other factors on a regular basis. At March 31, 2008, the
market value of fair valued securities amounted to $1,414,337 or 0.06% of
total investments.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR American Depositary Receipt
GDR Global Depositary Receipt
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
----------------------------------------------------- ------ --------------
North America ....................................... 77.9% $1,739,611,624
Europe .............................................. 15.0 334,614,131
Latin America ....................................... 3.4 74,533,223
Japan ............................................... 3.0 67,747,392
Asia/Pacific ........................................ 0.7 16,172,800
----- --------------
Total Investments ................................... 100.0% $2,232,679,170
===== ==============
See accompanying notes to schedule of investments.
8
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (UNAUDITED)
1. SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange or traded in the U.S. over-the-counter market for
which market quotations are readily available are valued at the last quoted sale
price or a market's official closing price as of the close of business on the
day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall determine in good faith to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Funds, LLC, the Adviser.
Portfolio securities primarily traded on a foreign market are generally valued
at the preceding closing values of such securities on the relevant market, but
may be fair valued pursuant to procedures established by the Board if market
conditions change significantly after the close of the foreign market but prior
to the close of business on the day the securities are being valued. Debt
instruments with remaining maturities of 60 days or less that are not credit
impaired are valued at amortized cost, unless the Board determines such amount
does not reflect the securities' fair value, in which case these securities will
be fair valued as determined by the Board. Debt instruments having a maturity
greater than 60 days for which market quotations are readily available are
valued at the average of the latest bid and asked prices. If there were no asked
prices quoted on such day, the security is valued using the closing bid price.
Futures contracts are valued at the closing settlement price of the exchange or
board of trade on which the applicable contract is traded.
Securities and assets for which market quotations are not readily available are
fair valued as determined by the Board.
ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 157 "FAIR VALUE
MEASUREMENTS" ("SFAS 157")
On January 1, 2008, the Fund adopted SFAS 157 that clarifies the definition of
fair value for financial reporting, establishes a framework for measuring fair
value, and requires additional disclosures about the use of fair value
measurements. The three levels of the fair value hierarchy under SFAS 157 are
described below:
o Level 1 - quoted prices in active markets for identical securities;
o Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.); and
o Level 3 - significant unobservable inputs (including the Fund's
determinations as to the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. The
summary of inputs used to value the Fund's net assets as of March 31, 2008 is as
follows:
OTHER FINANCIAL
INVESTMENTS IN INSTRUMENTS
SECURITIES (UNREALIZED
VALUATION INPUTS (MARKET VALUE) DEPRECIATION)*
--------------------------------------------- -------------- ---------------
Level 1 - Quoted Prices $2,093,834,949 --
Level 2 - Other Significant Observable Inputs 138,844,221 $ (3,597,600)
-------------- --------------
Total $2,232,679,170 $ (3,597,600)
============== ==============
----------
* Other financial instruments are derivative instruments not reflected in
the Schedule of Investments, such as futures, forwards and swaps which are
valued at the unrealized appreciation/depreciation on the investment.
9
THE GABELLI DIVIDEND & INCOME TRUST
NOTES TO SCHEDULE OF INVESTMENTS (CONTINUED) (UNAUDITED)
2. SWAP AGREEMENTS. The Fund may enter into equity, contract for difference, and
interest rate swap or cap transactions. The use of swaps and caps is a highly
specialized activity that involves investment techniques and risks different
from those associated with ordinary portfolio transactions. In an interest rate
swap, the Fund would agree to pay to the other party to the interest rate swap
(which is known as the "counterparty") periodically a fixed rate payment in
exchange for the counterparty agreeing to pay to the Fund periodically a
variable rate payment that is intended to approximate the Fund's variable rate
payment obligation on Series B Preferred Shares. In an interest rate cap, the
Fund would pay a premium to the counterparty and, to the extent that a specified
variable rate index exceeds a predetermined fixed rate, would receive from that
counterparty payments of the difference based on the notional amount of such
cap. In a swap, a set of future cash flows are exchanged between two
counterparties. One of these cash flow streams will typically be based on a
reference interest rate combined with the performance of a notional value of
shares of a stock. The other will be based on the performance of the shares of a
stock. Swap and cap transactions introduce additional risk because the Fund
would remain obligated to pay preferred stock dividends when due in accordance
with the Statement of Preferences even if the counterparty defaulted. If there
is a default by the counterparty to a swap contract, the Fund will be limited to
contractual remedies pursuant to the agreements related to the transaction.
There is no assurance that the swap contract counterparties will be able to meet
their obligations pursuant to a swap contract or that, in the event of default,
the Fund will succeed in pursuing contractual remedies. The Fund thus assumes
the risk that it may be delayed in or prevented from obtaining payments owed to
it pursuant to a swap contract. The creditworthiness of the swap contract
counterparties is closely monitored in order to minimize this risk. Depending on
the general state of short-term interest rates and the returns on the Fund's
portfolio securities at that point in time, such a default could negatively
affect the Fund's ability to make dividend payments. In addition, at the time a
swap or cap transaction reaches its scheduled termination date, there is a risk
that the Fund will not be able to obtain a replacement transaction or that the
terms of the replacement will not be as favorable as on the expiring
transaction.
The use of derivative instruments may involve, to varying degrees, elements of
market and counterparty risk in excess of the amount recognized below.
The Fund has entered into an interest rate swap agreement with Citibank N.A.
Under the agreement the Fund receives a variable rate of interest and pays a
respective fixed rate of interest on the nominal value of the swap. Details of
the swap at March 31, 2008 are as follows:
NET
NOTIONAL FLOATING RATE*/ TERMINATION UNREALIZED
AMOUNT FIXED RATE (RATE RESET MONTHLY) DATE DEPRECIATION
--------------------------- ------------------------ -------------------------------- ----------- ------------
$ 100,000,000 4.01% 3.11938% 06/02/10 $ (3,446,202)
----------
* Based on Libor (London Interbank Offered Rate).
The Fund has entered into contract for difference swaps with Bear, Stearns
International Limited. Details of the swaps at March 31, 2008 are as follows:
NET
NOTIONAL EQUITY SECURITY INTEREST RATE/ TERMINATION UNREALIZED
AMOUNT RECEIVED EQUITY SECURITY PAID DATE DEPRECIATION
--------------------------- ------------------------ -------------------------------- ----------- ------------
Market Value Overnight LIBOR plus 40 bps plus
Appreciation on: Market Value Depreciation on:
$ 788,988 (50,000 shares) Scottish & Newcastle plc Scottish & Newcastle plc 12/15/08 $ (6,158)
3,655,324 (320,000 shares) Cadbury Schweppes plc Cadbury Schweppes plc 02/16/09 (145,240)
------------
$ (151,398)
============
3. TAX INFORMATION. Under the current tax law, capital and currency losses
realized after October 31 and prior to the Fund's fiscal year end may be
deferred as occurring on the first day of the following fiscal year. Post
October currency losses at December 31, 2007 were $99,471.
10
TRUSTEES AND OFFICERS
THE GABELLI DIVIDEND & INCOME TRUST
ONE CORPORATE CENTER, RYE, NY 10580-1422
TRUSTEES OFFICERS
Mario J. Gabelli, CFA Bruce N. Alpert
CHAIRMAN & CHIEF EXECUTIVE OFFICER, PRESIDENT
GAMCO INVESTORS, INC.
Carter W. Austin
Anthony J. Colavita VICE PRESIDENT
ATTORNEY-AT-LAW,
ANTHONY J. COLAVITA, P.C. Peter D. Goldstein
CHIEF COMPLIANCE OFFICER
James P. Conn
FORMER MANAGING DIRECTOR & Agnes Mullady
CHIEF INVESTMENT OFFICER, TREASURER AND SECRETARY
FINANCIAL SECURITY ASSURANCE HOLDINGS LTD.
INVESTMENT ADVISER
Mario d'Urso Gabelli Funds, LLC
CHAIRMAN, MITTEL CAPITAL MARKETS SPA One Corporate Center
Rye, New York 10580-1422
Frank J. Fahrenkopf, Jr.
PRESIDENT & CHIEF EXECUTIVE OFFICER, CUSTODIAN
AMERICAN GAMING ASSOCIATION State Street Bank and Trust Company
Michael J. Melarkey COUNSEL
ATTORNEY-AT-LAW, Skadden, Arps, Slate, Meagher & Flom LLP
AVANSINO, MELARKEY, KNOBEL & MULLIGAN
TRANSFER AGENT AND REGISTRAR
Salvatore M. Salibello Computershare Trust Company, N.A.
CERTIFIED PUBLIC ACCOUNTANT,
SALIBELLO & BRODER, LLP STOCK EXCHANGE LISTING
Edward T. Tokar 5.875% 6.00%
SENIOR MANAGING DIRECTOR, Common Preferred Preferred
BEACON TRUST COMPANY ---------- --------- ---------
NYSE-Symbol: GDV GDV PrA GDV PrD
Anthonie C. van Ekris Shares Outstanding: 83,802,037 3,200,000 2,600,000
CHAIRMAN, BALMAC INTERNATIONAL, INC.
Salvatore J. Zizza
CHAIRMAN, ZIZZA & CO., LTD.
The Net Asset Value per share appears in the Publicly Traded Funds column, under
the heading "General Equity Funds," in Monday's The Wall Street Journal. It is
also listed in Barron's Mutual Funds/Closed End Funds section under the heading
"General Equity Funds."
The Net Asset Value per share may be obtained each day by calling (914) 921-5070
or visiting www.gabelli.com.
--------------------------------------------------------------------------------
For general information about the Gabelli Funds, call 800-GABELLI
(800-422-3554), fax us at 914-921-5118, visit Gabelli Funds' Internet homepage
at: WWW.GABELLI.COM, or e-mail us at: closedend@gabelli.com
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may, from time to time, purchase
its common shares in the open market when the Fund's shares are trading at a
discount of 7.5% or more from the net asset value of the shares. The Fund may
also, from time to time, purchase its preferred shares in the open market when
the preferred shares are trading at a discount to the liquidation value.
--------------------------------------------------------------------------------
THE GABELLI DIVIDEND & INCOME TRUST
ONE CORPORATE CENTER
RYE, NY 10580-1422
(914) 921-5070
WWW.GABELLI.COM
FIRST QUARTER REPORT
MARCH 31, 2008
GDV 1Q/2008
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Gabelli Dividend & Income Trust
--------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date May 27, 2008
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
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Bruce N. Alpert, Principal Executive Officer
Date May 27, 2008
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By (Signature and Title)* /s/ Agnes Mullady
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Agnes Mullady,
Principal Financial Officer and Treasurer
Date May 27, 2008
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* Print the name and title of each signing officer under his or her signature.