2024-04-25 23:11:09 ET
Summary
- Last year, I argued GDV was a good buy despite concerns about its financials exposure. This call was successful, with GDV outperforming and being up +18%.
- GDV was undervalued due to perceived high financials exposure, but this has since been corrected.
- GDV no longer presents an attractive entry point due to higher market valuations, but remains a strong long-term investment.
- The fund's discount to NAV has narrowed to -16% but could narrow further to the -10% to -12% range.
Thesis
We started covering the Gabelli Dividend & Income Trust ( GDV ) last year, when we argued the fund was getting penalized unfairly for a perceived high financials exposure during the rates melt-up. The call proved to be a very robust one, with the CEF up +18% since, handily outperforming the S&P 500:
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For further details see:
GDV: No Longer An Attractive Entry Point (Rating Downgrade)