Gabelli Equity Trust Series G Preferred Stock Yields Above 6%, Trading at 16.32% Discount

Gabelli Equity Trust's Series G Preferred Stock has crossed above a 6% yield, with a quarterly dividend of $1.25 and a liquidation preference discount of 16.32%. The stock is currently trading at $20.80, up 0.2% on the day. The average yield in the "ETFs & CEFs" category is 6.14%.

Gabelli Equity Trust's Series G Preferred Stock has recently crossed above a 6% yield, making it an attractive option for income-focused investors. The stock is currently trading at $20.80, up 0.2% on the day, and offers a quarterly dividend of $1.25. Additionally, the stock features a liquidation preference discount of 16.32%, providing an extra layer of protection for investors [1].

The Series G Preferred Stock's yield is significantly higher than the average yield in the "ETFs & CEFs" category, which stands at 6.14%. This high yield, coupled with the stock's strong fundamentals, makes it a compelling choice for those seeking high-income investments [2].

Gabelli Equity Trust, a closed-end equity mutual fund managed by Gabelli Funds, LLC, invests in a diversified portfolio of stocks across various sectors. The fund employs a bottom-up stock picking approach, focusing on value stocks with above-average growth potential. This strategy has allowed the fund to generate consistent double-digit yields and high total returns over the long term [3].

Despite the recent price loss of 15%, the fund's top investments have proven to be resilient and have generated significant price growth over the past several years. This consistency in performance, combined with the fund's high yield, makes Gabelli Equity Trust a solid choice for investors seeking income and capital appreciation [4].

However, it is essential to note that the fund's high yield may be a red flag, as it could indicate that the fund's investments are at risk of being liquidated. Additionally, the fund's expense ratio of 1.6% is significantly higher than the average equity mutual fund expense ratio, which could impact the fund's overall performance [5].

In conclusion, Gabelli Equity Trust's Series G Preferred Stock offers an attractive yield of over 6%, making it a compelling option for income-focused investors. However, investors should carefully consider the fund's high yield and expense ratio before making a decision.

References:
[1] https://stockanalysis.com/stocks/gab/
[2] https://seekingalpha.com/article/4551659-high-quality-preferred-stock-with-6-yield-potential-from-gabelli-equity-trust
[3] https://seekingalpha.com/article/4551659-high-quality-preferred-stock-with-6-yield-potential-from-gabelli-equity-trust
[4] https://seekingalpha.com/article/4551659-high-quality-preferred-stock-with-6-yield-potential-from-gabelli-equity-trust
[5] https://seekingalpha.com/article/4551659-high-quality-preferred-stock-with-6-yield-potential-from-gabelli-equity-trust