Dividend and Income Fund Declares Quarterly Distribution

Notification of Sources of Distribution

Statement Pursuant to Section 19(a) of the
Investment Company Act of 1940

NEW YORK, NY / ACCESSWIRE / March 1, 2019 / A quarterly distribution of $0.20 per share was declared today by Dividend and
Income Fund
(NYSE: DNI) (NASDAQ: XDNIX) (the “Fund”), payable March 29, 2019 to shareholders of record as of March 15, 2019 (ex-dividend date: March 14, 2019).

Under U.S. tax rules applicable to the Fund, the amount and character of distributable income for each tax year can be finally determined only as of the end of the Fund’s tax year. However, under Section 19 of the Investment Company Act of 1940, as amended, and related Rules, the Fund may be required to indicate to shareholders the source of certain distributions to shareholders. The information provided herein does not currently represent information for tax reporting purposes. Earnings and profits on a tax basis may differ.

The following table sets forth the estimated sources of the current distribution, and the cumulative distributions paid this fiscal year to date from the sources indicated in the table. All amounts are expressed on a per common share basis and as a percentage of the distribution amount.

DISTRIBUTION ESTIMATES

Current Quarterly Distribution
from:

Per Share

Amount

Percentage

Net Investment Income

$ 0.0416

20.78%

Net Realized Short-Term Capital Gains

0.0000

0.00

Net Realized Long-Term Capital Gains

0.0661

33.06

Return of Capital or other Capital Source

0.0923

46.16

Total

$ 0.2000

100.00%

Fiscal Year-to-Date Cumulative Distributions from: *

Per Share

Amount

Percentage

Net Investment Income

$ 0.0416

20.78%

Net Realized Short-Term Capital Gains

0.0000

0.00

Net Realized Long-Term Capital Gains

0.0661

33.06

Return of Capital or other Capital Source

0.0923

46.16

Total

$ 0.2000

100.00%

* The Fund’s current fiscal year began on January 1, 2019.

Shareholders should not draw any
conclusions about the Fund’s investment performance from the amount of this
distribution
or
from the terms of the Fund’s distribution policy.

Distributions may be paid in part or
in full from net investment income, realized capital gains, and by returning
capital, or a combination thereof.
To the extent that the Fund has estimated that it has distributed more
than its income and net realized capital gains, a portion of your distribution
may be a return of capital. A return of
capital may occur, for example, when some or all of the money that you invested
in the Fund is paid back to you. A
return of capital distribution does not necessarily reflect the Fund’s
investment performance and should not be confused with ‘yield’ or ‘income.’ Additionally,
a return of capital is not taxable; rather it reduces a shareholder’s tax basis
in his or her shares of the Fund.

The amounts and sources of
distributions reported in this 19(a) Notice are only estimates based on book
earnings, are likely to change over time and are not being provided for tax
reporting purposes. The actual amounts
and sources of the amounts for tax reporting purposes will depend upon the
Fund’s investment experience during the entirety of its fiscal year and may be subject
to changes based on tax regulations. The amounts and sources of distributions
year-to-date may be subject to additional adjustments.

THE FUND INTENDS TO SEND YOU A FORM
1099-DIV FOR THE CALENDAR YEAR THAT WILL INSTRUCT YOU HOW TO REPORT THESE
DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.

The following table provides the Fund’s total return performance based on net asset value (“NAV”) on the last day of the month prior to the distribution declaration date over various time periods compared to the Fund’s annualized and cumulative distribution rates.

Average Annual Total Return*

5.91%

Annualized Distribution Rate as a % of NAV**

5.35%

Cumulative Total Return as a % of NAV***

16.61%

Cumulative Distribution Rate as a % of NAV****

1.34%

* Average Annual Total Return represents the compound average of the Annual NAV Total Returns of the Fund for the 5 year period ending February 28, 2019. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year including distributions paid and assuming reinvestment of these distributions.

** Based on the Fund’s NAV as of February 28, 2019 and the quarterly distribution of $0.20.

***Cumulative Total Return is the
percentage change in the Fund’s NAV including distributions paid and assuming reinvestment
of these distributions for the period January 1, 2019 through February 28, 2019.

**** Based on the Fund’s NAV as of February 28, 2019 and includes distributions through March 31, 2019.

While NAV performance may be indicative of the Fund’s investment performance, it does not measure the value of a shareholder’s investment in the Fund. The value of a shareholder’s investment in the Fund is determined by the Fund’s market price, which is based on the supply and demand for the Fund’s shares in the open market.

This quarterly distribution reflects the Fund’s current distribution policy to provide shareholders with a relatively stable cash flow per share. There is no guarantee that the Fund’s current distribution policy will reduce or eliminate the Fund’s market price discount to its NAV per share, if any, and the Fund’s trustees have no fiduciary duty to take action, or to consider taking any action, to narrow any such discount. The distribution policy may be amended, suspended, or terminated at any time without prior notice.

About the Fund

The Fund is a closed end fund with the primary investment objective of seeking high current income. Capital appreciation is a secondary objective. The Fund seeks to achieve its objectives by investing, under normal circumstances, at least 50% of its total assets in income generating equity securities. From time to time, shares of the Fund may trade at a premium to NAV or a discount to NAV. During such periods when the Fund’s NAV per share is above the market price, there may be an opportunity for investors to purchase shares of the Fund at a discount to their underlying value. The Fund’s premium or discount to NAV may vary over time and shares of the Fund may subsequently be worth more or less than their original cost.

Shares of closed end funds frequently trade at a discount from their NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s NAV has decreased in the past, and therefore could decrease in the future, as a result of its investment activities. Neither the Investment Manager nor the Fund can predict whether shares of the Fund will trade at, below, or above NAV. The risk of holding shares of the Fund that might trade at a discount is more pronounced for investors expecting to sell their shares in a relatively short period of time after acquiring them because, for those investors, realization of a gain or loss on their investments is likely to be more dependent upon the existence of a premium or discount than upon portfolio performance. The shares of the Fund are designed primarily for long term investors and should not be considered a vehicle for trading purposes. The NAV of the Fund’s shares typically will fluctuate with price changes of the Fund’s portfolio securities, and these fluctuations are likely to be greater in the case of a fund which uses leverage, as the Fund may from time to time. In the event that shares of the Fund trade at a premium to NAV, there is no assurance that any such premium will be sustained for any period of time and will not decrease, or that the shares of the Fund will not trade at a discount to NAV thereafter. The market price for the Fund is based on supply and demand which fluctuates daily based on many factors, such as economic conditions and global events, investor sentiment, and security-specific factors.

There is no assurance that the Fund’s investment objectives will be attained. Past performance is no guarantee of future results. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The Fund’s investment policies, management fees and other matters of interest to prospective investors may be found in its filings with the U.S. Securities and Exchange Commission, including its annual and semi-annual reports. To obtain a copy of the reports, please call us at 212-785-0900 or download them at http://dividendandincomefund.com/literature/. Please read the reports carefully before investing.

To learn more about the Fund visit www.DividendandIncomeFund.com. For Fund shareholder related questions, please call 212-785-0900. Dividend and Income Fund is part of a fund complex which includes the Midas Funds and Foxby Corp.

This notice is provided for informational purposes only. This is not a prospectus, circular, or representation intended for use in the purchase of shares of the Fund or any securities mentioned in this notice. This notice shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state, or an exemption therefrom.

Investment products, including shares of closed end, are not federally or FDIC insured, are not deposits or obligations of, or guaranteed by, any financial institution and involve investment risk, including possible loss of principal and fluctuation in value. Consult with your tax advisor or attorney regarding specific tax issues.

Cautionary Note Regarding Forward Looking Statements

Certain information presented in this release may contain “forward looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward looking statements include, but are not limited to, statements concerning the Fund’s plans, objectives, goals, strategies, future events, future performance, or intentions, and other information that is not historical information. In some cases, forward looking statements can be identified by terminology such as “believes,””expects,””estimates,””may,””will,””should,””anticipates” or “intends,” or the negative of such terms or other comparable terminology, or by discussions of strategy. All forward looking statements by the Fund involve known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Fund, which may cause the Fund’s actual results to be materially different from those expressed or implied by such statements. The Fund may also make additional forward looking statements from time to time. All such subsequent forward looking statements, whether written or oral, by the Fund or on its behalf, are also expressly qualified by these cautionary statements. Investors should carefully consider the risks, uncertainties, and other factors, together with all of the other information included in the Fund’s filings with the SEC, and similar information. All forward looking statements apply only as of the date made. The Fund undertakes no obligation to publicly update or revise forward looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

Contact:

Thomas O’Malley
Chief Financial Officer
1-212-785-0900
tomalley@DividendandIncomeFund.com
www.DividendandIncomeFund.com

SOURCE: Dividend and Income Fund

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