Gabelli Utility Trust's Preferred Stock: A Secure Investment with High Yield

Instructions

This analysis focuses on the Gabelli Utility Trust (GUT) and its Series C preferred stock (GUT.PR.C), presenting them as a compelling option for investors seeking stable income with an attractive yield.

Invest in Stability: Secure Your Future with Gabelli Utility Trust's Preferred Stock

Introducing the Gabelli Utility Trust and its A1-Rated Preferred Stock

We are pleased to introduce you to the Gabelli Utility Trust (GUT) and its highly-rated A1 preferred stock, GUT.PR.C. This preferred stock currently offers a yield exceeding 6%, making it an attractive option for income-focused investors.

Key Features of Gabelli Utility Trust (GUT)

The Gabelli Utility Trust manages total net assets of $331 million. Its preferred stock, GUT.PR.C, provides a current yield of approximately 6.02% and trades below its par value. This offering is further strengthened by significant capital protection measures under the 1940 Act, ensuring a degree of safety for investors. The fund maintains a modest leverage ratio of just 14%, which means it can withstand considerable market volatility while maintaining strong regulatory coverage. The trust's investment portfolio is heavily concentrated in electric and natural gas utilities, a sector known for its stability, which in turn supports consistent dividend payouts and favorable risk-adjusted returns.

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