CSCO - Gabelli Utility Trust: Utilities Are Appealing But Not When Distribution Is Unsustainable

• Utilities are fairly appealing in uncertain times due to their relative stability.
• The sector delivered a reasonably strong performance in 2019, which is likely making some investors interested.
• The Gabelli Utility Trust is globally diversified and offers a yield that is substantially above the index, which may appeal to index investors.
• The fund is not generating nearly enough in income and capital gains to cover this distribution, and so, may be forced to cut.
• The fund is substantially overvalued and will almost certainly deliver overall losses to its investors going forward.

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