Gabelli Utility Trust: We Don't Like The Valuation, But Want The Qualified 6% From The Preferred
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Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(5min)CommentsSummaryGabelli Utility Trust and its A1-rated preferred stock offer a compelling yield profile for conservative income investors.GUT.PR.C currently yields about 6.02%, trades below par, and benefits from robust capital protection under the 1940 Act.GUT maintains a modest 14% leverage ratio, with regulatory coverage remaining strong even in severe market declines.The fund's portfolio is heavily weighted toward electric and natural gas utilities, supporting dividend stability and risk-adjusted returns.This idea was discussed in more depth with members of my private investing community, Trade With Beta. Learn More » Abstract Aerial Art/DigitalVision via Getty Images In the following lines, we will introduce you to Gabelli Utility Trust (GUT) and its A1-rated preferred stock: (GUT.PR.C), which now provides above 6% current yield. GUT highlights Total Net Assets: $331 million This article was written byArbitrage Trader15.5K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GUT.PR.C either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.