Gabelli Utility Trust

GUT

Market cap $538M

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.

Utility stocks are supposed to be rather boring, but when you add leverage and appreciation as your primary objective, strange things start happening to utility CEFs. Unlike most CEFs which list income as their primary-objective, the Virtus Total Return fund (ZTR) and the Gabelli Utility Trust are both focused on capital-appreciation first and income second. Which is rather a surprise since both funds offer very competitive 9.5%+ current market yields paid monthly. And both have similar market prices in the low $6/share range.

RYE, N.Y., Nov. 12, 2025 (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 January, February, and March 2026.

Gabelli Utility Trust offers a high 9.9% yield and monthly payouts, appealing to income-focused investors seeking stability in the utilities sector. GUT trades at an extreme 91% premium to NAV, largely due to its consistent distributions, but often pays out more than it earns, limiting NAV growth. While GUT's long-term total returns are respectable, its reliance on realized gains and high payout ratio restricts capital appreciation versus peers like UTG and DPG.

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RYE, N.Y., Aug. 21, 2025 (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 October, November, and December 2025.

GUT's premium has dropped but remains excessively high, making it a continued sell candidate compared to more reasonably valued peers. The fund's excessive premium and high NAV distribution rate create significant risk, with the potential for sharp losses if a distribution cut occurs. Peer funds like UTG, UTF, DNP, and DPG offer more attractive valuations and what appear to be more sustainable payouts, making them better alternatives for investors.

RYE, N.Y., May 14, 2025 (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 2025.

The Gabelli Utility Trust offers an 11.26% yield, significantly higher than peers, but its high premium and distribution sustainability are concerns. Utilities provide recession-resistant income, making them attractive amid potential economic downturns, though the Gabelli Utility Trust's high premium suggests caution. Despite recent market volatility, the Gabelli Utility Trust has shown resilience, outperforming the S&P 500 Index and maintaining stable distributions since 2010.