USA - GAB: Managed Minimum 10% Distribution Rate Out Of Equities
2024-04-27 10:52:10 ET
Summary
- GAB is currently trading at a slight discount, making it a more attractive candidate than our previous update.
- More patient investors could still yet be likely to look for a deeper discount on this fund to make it a more enticing prospect.
- GAB has a minimum 10% managed distribution policy, which is the main draw for income investors.
Written by Nick Ackerman, co-produced by Stanford Chemist.
We had previously touched on Gabelli Equity Trust ( GAB ) last year; at that time, we also discussed Liberty All-Star Equity ( USA ). We were recapping how our previous swap idea trade we highlighted worked out successfully. Since then, GAB has not done too much in terms of total returns during that period.
GAB Performance Since Prior Update (Seeking Alpha)
This was largely due to the fund's premium coming down even further. In that update, GAB was still sporting around a 7% premium, and today, it's now at a very narrow discount. For that reason, it's looking like a much better opportunity today....
GAB: Managed Minimum 10% Distribution Rate Out Of Equities