Summary

• Gabelli Equity Trust offers investment-grade preferreds yielding 6.2–6.3%, among the safest in the sector due to low leverage and asset coverage.
• GAB’s common shares trade at a 4.5% discount to NAV, with a 10.8% dividend yield and a recent capital raise increasing net assets to $2.2 billion.
• The preferreds, GAB.PR.H, GAB.PR.G, GAB.PR.K, are cumulative, qualified, callable, and rated A1 by Moody’s, but currently lags peers in yield.
• Looking for a portfolio of ideas like this one? Members of Trade With Beta get exclusive access to our subscriber-only portfolios. Learn More »
• Sitewide Sale 2026: Get 20% Off

In the following lines, we will take a deep look into the Gabelli Equity Trust (GAB) and its investment-grade preferred stocks, which provide a current yield of around 6.2 - 6.3% and are one of the safest

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.