Gabelli Healthcare & WellnessRx Trust Increases Quarterly Distribution by 13%

On May 14, 2025, The Gabelli Healthcare & WellnessRx Trust (NYSE: GRX) announced a significant increase in its quarterly distribution, marking a 13% rise from $0.15 to $0.17 per share. This adjustment results in an annual distribution increase to $0.68 per share from the previous $0.60. The decision was approved by the Board of Trustees and will be reflected in the quarterly distribution payable on June 23, 2025.

The increase in distribution is a reflection of the fund’s strong performance, with 80% of the distributions attributed to net capital gains. This indicates robust portfolio performance, although it also suggests that a substantial portion of the distributions is funded through capital gains. Additionally, 16% of the distributions are classified as a return of capital, which effectively reduces the shareholder’s cost basis. Only 4% of the distributions come from net investment income, highlighting a low dividend yield from the portfolio holdings.

The 13% increase in GRX’s quarterly distribution signals strong fund performance and enhances shareholder returns. However, it is important to note that the increase is partially funded through capital gains and return of capital, which may have implications for shareholders’ tax liabilities.

The Gabelli Healthcare & WellnessRx Trust is a closed-ended equity mutual fund that specializes in public equity investments globally. Managed by Gabelli Funds, LLC, a reputable investment management company owned by GAMCO Investors, Inc., the fund was launched in June 2007 and trades on the OTC Bulletin Board.

This distribution increase is part of a broader trend of financial adjustments within the fund, aimed at maximizing shareholder value while navigating the complexities of global equity markets. The fund’s strategy and performance continue to be closely monitored by investors and analysts alike, given its focus on healthcare and wellness sectors.

In summary, the Gabelli Healthcare & WellnessRx Trust’s decision to increase its quarterly distribution underscores its strong performance and commitment to enhancing shareholder returns, despite the reliance on capital gains and return of capital for funding these distributions.