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Invest with Mario Gabelli at a discount and earn a high dividend yield (GLU)

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Closed-end mutual funds offer bargains when selling below net asset value, as the The Gabelli Global Utility & Income Trust ( GLU , quote ) is now.

The Gabelli Global Utility & Income Trust (GLU) is a closed-end mutual that should be followed and bought when it dips. Like a mutual fund, closed-end funds buy and sell a collection of securities. But like an exchange-traded fund, GLU is listed on bourses, such as the New York Stock Exchange.

The price of a closed-end fund should adhere to that of the underlying assets. But, needless to say, that does not always happen. As George Soros noted, financial markets are "chaos." Chaos is inefficiency and from that comes profits. When the Gabelli Global Utility & Income Trust (GLU) is trading below asset value -- as it is now -- investors can buy at a discount. This was recommended by John Waggoner in a USA Today article, "Bargain-hunting? Check out closed-end stock funds."

In addition to buying at a discount, investors also receive dividend income of 5.85% with GLU. Now around $20.50, the 52-week range of The Gabelli Global Utility & Income Trust (GLU) is $15.97 to $21.46. At present, the price-to-book ratio is 0.95. That is not much of a discount due to GLU being up almost 10% for the quarter. But following The Gabelli Global Utility & Income Trust will be rewarding as it will allow for purchases at a wider discount when share prices inevitably fluctuate.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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