Gabelli Utility Trust: A Valuation Concern with a Qualified 6% Yield from Preferred Stock

Gabelli Utility Trust (GUT) is a financial institution with $331 million in total net assets. The company's A1-rated preferred stock, GUT.PR.C, offers a current yield above 6%. However, the valuation of the stock is not favorable. Despite this, investors may consider purchasing the preferred stock for the qualified 6% yield it provides.