Gabelli Equity Trust Reaffirms Its 10% Distribution Policy and Declares Second Quarter Distribution of $0.15
Per Share
The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the “Fund”) reaffirmed its 10% distribution policy and
declared a $0.15 per share cash distribution payable on June 26, 2017 to common stock shareholders of record on June
19, 2017.
The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Directors. Under the
Fund’s current distribution policy, the Fund intends to pay a minimum annual distribution of 10% of the average net asset value of
the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue
Code for regulated investment companies. The average net asset value of the Fund is based on the average net asset values as of the
last day of the four preceding calendar quarters during the year. The net asset value per share fluctuates daily.
Each quarter, the Board of Directors reviews the amount of any potential distribution from the income, realized capital gain, or
capital available. The Board of Directors will continue to monitor the Fund’s distribution level, taking into consideration the
Fund’s net asset value and the financial market environment. The Fund’s distribution policy is subject to modification by the Board
of Directors at any time, and there can be no guarantee that the policy will continue. The distribution rate should not be
considered the dividend yield or total return on an investment in the Fund.
All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both)
for individuals, each subject to the maximum federal income tax rate, which is currently 20% in taxable accounts for individuals
(or zero depending on an individual’s tax bracket). In addition, certain U.S. shareholders who are individuals, estates or trusts
and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare surcharge on their "net investment income",
which includes dividends received from the Fund and capital gains from the sale or other disposition of shares of the Fund.
If the Fund does not generate sufficient earnings (dividends and interest income and realized net capital gain) equal to or in
excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s
earnings would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original
investment, it is generally not taxable and is treated as a reduction in the shareholder’s cost basis.
Long-term capital gains, qualified dividend income, ordinary income, and return of capital, if any, will be allocated on a
pro-rata basis to all distributions to common shareholders for the year. Based on the accounting records of the Fund currently
available, each of the distributions paid to common shareholders in 2017 would include approximately 2% from net investment income,
3% from net capital gains and 95% would be deemed a return of capital on a book basis and does not represent information for tax
reporting purposes. The estimated components of each distribution are updated and provided to shareholders of record in a notice
accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2017 will be made after year
end and can vary from the quarterly estimates. Shareholders should not draw any conclusions about the Fund’s investment performance
from the amount of the current distribution. All shareholders with taxable accounts will receive written notification regarding the
components and tax treatment for all 2017 distributions in early 2018 via Form 1099-DIV.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing.
More information regarding the Fund’s distribution policy and other information about the Fund is available by calling
800-GABELLI (800-422-3554) or visiting www.gabelli.com .
The Gabelli Equity Trust Inc. is a non-diversified, closed-end management investment company with $1.8 billion in total net
assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL).
The Gabelli Equity Trust Inc.
Molly Marion/ Carter Austin, (914) 921-5070
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