Gabelli Utility Trust

GUT

Market cap $600M

Gabelli Utility Trust common stock trades at a 118% premium to NAV, near decade highs, making it unattractive for new purchases. GUT.PR.C preferred shares offer a 6.16% yield and an A1 Moody's rating but lag peer yields with similar credit quality. The fund maintains low leverage (14%) and robust asset coverage, making capital impairment on preferreds highly unlikely.

The Gabelli Utility Trust is a diversified, closed-end management investment company whose primary objectives are long-term growth of capital and income. In the first quarter of 2026, the S&P 500 Utilities Index gained 8.3%, significantly outperforming the broader market, with the S&P 500 Index declining 4.3% and the NASDAQ falling 7.1%. Year-to-date, some of the Fund's top contributors were ONEOK, National Fuel Gas, NextEra Energy and Evergy.

We review the CEF market valuation and performance through the second week of May and highlight recent market action. CEF market showed mixed performance; equity sectors outperformed while MLP and Utility funds lagged, with discounts remaining weak despite NAV strength. Loan CEFs underperformed due to distribution cuts from Fed rate moves and AI disruption concerns, widening their discounts after prior expensive levels.

RYE, N.Y., May 13, 2026 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $0.05 per share for each of July, August, and September 2026.

Utility and energy-focused infrastructure funds are benefiting from AI-driven power demand, leading to strong performance. Today, we're taking a fresh look at the space, looking at key metrics to determine some potential ideas. Diversifying across discounted infrastructure CEFs provides both income and potential upside as AI demand sustains sector momentum and discounts may narrow.

There's an activist story shaking the CEF world right now. And no matter how it plays out, it could lead to shrinking discounts in these high-yielding funds.

The Gabelli Utilities Trust is a solid option for one who is looking for a defensive option. While GUT is a BUY, XLU has a better overall performance profile and deserves a rating of Strong Buy. GUT's standard deviation and expense ratio are drags on its overall rating, keeping it from being the preferred option.

RYE, N.Y., Feb. 11, 2026 (GLOBE NEWSWIRE) -- The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) (the “Fund”) approved the continuation of its policy of paying fixed monthly cash distributions. The Board of Trustees declared cash distributions of $0.05 per share for each of April, May, and June 2026.

Utility stocks have been on a roll as more people come to see them as a way to play AI's bottomless power demand.

Gabelli Utility Trust and its A1-rated preferred stock offer a compelling yield profile for conservative income investors. GUT.PR.C currently yields about 6.02%, trades below par, and benefits from robust capital protection under the 1940 Act. GUT maintains a modest 14% leverage ratio, with regulatory coverage remaining strong even in severe market declines.