- 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.
For further details see:
Gabelli Utility Trust: Utilities Are Appealing, But Not When Distribution Is Unsustainable