Gabelli Equity Trust

GAB

Market cap $1.83B

Gabelli Equity Trust preferred shares present a compelling fixed-income alternative as common stocks remain overvalued. GAB's preferreds offer a stable A1 credit rating, trade below par, and yield approximately 5.8% with cumulative distributions. Compared to peers, GAB's preferreds have tighter spreads and strong credit quality, enhancing their appeal for risk-conscious investors.

This market continues to float higher—and that means we dividend investors do need to be more selective. But it doesn't mean there aren't high-yield options on the table for us.

RYE, N.Y., Aug. 21, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.15 per share cash distribution payable on September 23, 2025 to common stock shareholders of record on September 16, 2025.

I'm shifting focus to high-quality preferred stocks like those from Gabelli Equity Trust, as common stocks seem overvalued and fixed income offers better risk-return. GAB's preferreds are A1-rated, trade below par, yield around 6%, and offer strong stability with low leverage and robust protections. Compared to peers, GAB's preferreds deliver higher yields for their credit quality, making them attractive versus riskier alternatives with lower returns.

RYE, N.Y., May 14, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.15 per share cash distribution payable on June 23, 2025 to common stock shareholders of record on June 13, 2025.

The Gabelli Equity Trust offers high income and equity exposure, boasting a 10.73% yield, significantly higher than major domestic equity indices and fixed-income indices. The fund's portfolio lacks exposure to the underperforming technology sector, contributing to its outperformance compared to the S&P 500 Index year-to-date. GAB has a place in a portfolio, as its holdings are very different from those of most other closed-end funds. This helps avoid concentration in only a few companies.

RYE, N.Y., Feb. 13, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.15 per share cash distribution payable on March 24, 2025 to common stock shareholders of record on March 17, 2025.

We recommend selling equity and buying fixed income, focusing on high-yield preferred shares like Gabelli Equity Trust preferred stock for minimal credit risk. GAB preferred shares offer a high yield of 5.87% with strong credit ratings (A1 from Moody's and A from Fitch), making them a safe investment. GAB trades at a 1.47% discount with low leverage, ensuring stability and safety in comparison to other preferred stocks with higher risks.

The Gabelli Equity Trust is a closed-end investment company focused on long-term growth of capital. GAB's expense ratio of 1.6% is significantly higher than the average equity mutual fund expense ratio and represents a key negative. The fund's underweight exposure to mega-cap tech companies and premium to NAV are also key negatives.

RYE, N.Y., Nov. 14, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the “Fund”) reaffirmed and satisfied its 10% distribution policy by declaring a $0.15 per share cash distribution payable on December 20, 2024 to common stock shareholders of record on December 13, 2024. With this fourth quarter distribution, the total distributions from the Fund for 2024 would equate to $0.60 per share.