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Gabelli Utility Trust (GUT)

- NYSE
  • Fri, Aug. 14, 2:48 AM
    • Fifteen U.S. states, led by coal-producing West Virginia, have launched an effort to halt President Obama's landmark climate policy while they prepare a legal challenge to have it overturned.
    • The states are first seeking a stay order, or injunction, because they say Obama administration deadlines mean the demand to cut emissions is effective immediately.
    • The Clean Power Plan calls for the U.S. power sector to slash carbon emissions 32% (from 2005 levels) in 2030.
    • ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, PXJ, FIF, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, PUI, SDP, PSCU, FUGAX
    | 27 Comments
  • Mon, Aug. 10, 7:15 PM
    • Macquarie analyst Andrew Weisel makes a bullish case for utilities such as Edison International (NYSE:EIX), American Water Works (NYSE:AWK) and Aqua America (NYSE:WTR), noting that regulated utilities have boosted dividends by a median of 6.4% over the past year despite ambitious capex plans, and valuations look attractive.
    • Weisel prefers growth over yield, emphasizing that utilities with a top-quartile long-term growth outlook consistently outperform those with top-quartile dividend yields; he forecasts the fastest growth for EIX, AWK and WTR, and the slowest for Duke Energy (NYSE:DUK), PPL Corp. (NYSE:PPL) and Teco Energy (NYSE:TE).
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
    | 7 Comments
  • Thu, Aug. 6, 9:58 AM
    • The campaign to stop the Obama administration’s new emissions limits on power plants began taking shape yesterday, as 16 states asked the government to put the rules on hold while a Senate panel moved to block them.
    • West Virginia's attorney general led 15 other state AGs in a letter to the EPA requesting the agency temporarily suspend the rules while they challenge their legality in court; the administration believes its plan is legal and will not put it on hold, but by submitting the formal request, the states are laying the groundwork to ask the courts to suspend the emissions limits.
    • Although the most serious threat to the new power plant rules is in the courts, lawmakers in Congress are also pursuing legislative means to stop them, where a bill blocking the rules passed in the Senate Environment and Public Works Committee.
    • ETFs: XLE, XLU, VDE, ERX, OIH, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
    | 9 Comments
  • Tue, Aug. 4, 8:05 PM
    • The utilities (NYSEARCA:XLU) sector was Wall Street's biggest decliner today as natural gas was the surprise loser from Pres. Obama’s climate plan, with the White House apparently abandoning its previous enthusiasm for gas as a cleaner alternative to coal.
    • Gas producers were "confused and disappointed" that the administration eliminated an earlier projection that natural gas would contribute much more electricity, instead increasing the role of renewables; also perplexed were utility companies, who have led a power transformation and spent hundreds of millions of dollars to switch generating plants from coal to shale gas.
    • American Electric Power (NYSE:AEP) CEO Nicholas Akins says the U.S. does not have the luxury of being able to ditch nat gas, saying the only way to power big industrial processes is through large-scale, 24-hour generation close to consumers - “solar doesn’t provide that and wind doesn’t provide that."
    • The final plan is considered a boon for companies such as SolarCity (NASDAQ:SCTY) and NextEra Energy (NYSE:NEE) that have invested billions in renewable generation, but Sanford Bernstein calls NRG Energy (NYSE:NRG) the biggest potential loser from the plan, saying profits in some scenarios could tumble by half because most of its electricity comes from coal plants that are in EPA’s cross-hairs.
    • ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, FCG, DIG, GASL, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
    | 97 Comments
  • Mon, Aug. 3, 6:35 PM
    • Coal miners and related companies tumbled following today's announcement of the Obama administration's final Clean Power Plan, which aims to shift the U.S. energy mix towards renewable energy such as wind and solar while significantly limiting power plant carbon dioxide emissions.
    • Pres. Obama called the plan the “single most important step America has taken in the fight against global climate change," even though U.S. power plant emissions account for just 5% of global carbon emissions.
    • The final EPA rule requires a 32% cut in power plant carbon dioxide emissions by 2030 from 2005 levels, an increase from the 30% target proposed last year.
    • Industry officials are concerned about the plan’s cost, and Republicans and states hardest hit by the plan say they will fight it; more than a dozen states and the coal industry plan to sue the EPA, and several states say they will refuse to comply.
    • ETFs: XLE, XLU, VDE, ERX, OIH, KOL, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, PXJ, FIF, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, PUI, SDP, PSCU, FUGAX
    | 58 Comments
  • Tue, Jul. 7, 11:46 AM
    • It's not just Greece, where that country's government officials arrived in Brussels today with no new proposal to save its EMU membership (one is now promised for tomorrow), but China's stock market bubble is in the midst of a spectacular collapse. This even as Beijing's efforts to prop up share prices make the Federal Reserve look like the Ayn Rand Institute.
    • The 10-year U.S. Treasury yield is lower by nine basis points to 2.20%, the U.K. 10-year yield is down 16 bps to 1.86%, and the German 10-year yield is down 12 bps to 0.65%. Copper is leading across the board declines in commodity prices.
    • European stocks closed down another 2.1%, and the S&P 500 is down 1%. The Utilities SPDR (NYSEARCA:XLU), however, is up 1.6%, and the iShares Real Estate ETF (NYSEARCA:IYR) is up 0.7%. A mortgage REIT ETF (NYSEARCA:REM) is up 0.7%.
    • Realty Income (O +0.6%), Omega Healthcare (OHI +1.3%), HCP (HCP +1.7%), Equity Residential (EQR +1.4%), Simon Property (SPG +1.2%), Kimco (KIM +1.3%), Public Storage (PSA +1.5%), Boston Properties (BXP +1.6%), Strategic Hotels (BEE +1.2%), First Industrial Realty (FR +1.1%).
    • ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX
    | 16 Comments
  • Mon, Jun. 29, 7:37 PM
    • For some big U.S. power companies, the Supreme Court's rejection of EPA rules reducing air pollutants from coal-fired plants has arrived too late for them to turn away from a natural gas-fueled future.
    • FirstEnergy (NYSE:FE) already has deactivated 5,429 MW of coal-fired generation and says it has no intention of placing any of it back on line, saying "deactivating power plants is an expensive process, and once they are deactivated it is difficult to restart them."
    • Dynegy (NYSE:DYN) says it already spent $2B to comply with MATS and other air regulations, and NRG Energy (NYSE:NRG) says it already added the necessary equipment to comply with state and federal laws.
    • Officials at other big power companies including American Electric Power (NYSE:AEP) and Duke Energy (NYSE:DUK) also say they will not change their ongoing MATS compliance activities.
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
    | 36 Comments
  • Thu, Jun. 25, 6:15 PM
    • Utilities stocks as a group have deteriorated nearly 12% YTD and 6% this month alone, but the carnage may not be over, WSJ's Spencer Jakab warns.
    • Jakab notes that utilities stocks’ P/E ratio relative to the S&P 500 has dropped to ~91% today from 107% at the start of the year, but the figure remains well above the 73% average seen during the 2000-06 period.
    • As interest rates have risen this year - and an eye toward what the Fed may do later this year - utilities stocks have been crushed, and the sector’s P/E has dropped back into the 15s; at one point last year, the P/E for utilities was higher than that of the S&P 500 as well as the technology sector.
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU
    | 2 Comments
  • Oct. 10, 2012, 12:41 PM
    Not limited to mortgage REITs, panic grips another favorite of income investors, closed-end investment funds - notably those trading far above NAV for seemingly no other reason than their fat yield. The payouts on many of these are sustained by digging into capital rather than by earning a return on it. PGP -7.5%, PHK -7.8%, PHT -5.5%.
    | 8 Comments
  • Oct. 8, 2012, 3:25 PM
    Blinded by fat yields, investors continue to bid closed-end funds far higher than their NAVs. 66% of taxable and 73% of muni-bond funds trade above NAV now, compared to just 30% a year ago, with often the funds with the highest distributions having the highest premiums. "We believe that an excessive premium for the fund is not likely to be sustainable," says Gabelli of one of its funds. Are investors listening?
    | 35 Comments
  • Feb. 21, 2010, 3:47 PM
    High yields aren't always a good thing: Mario Gabelli, whose high-yielding closed-end fund Gabelli Utility Trust (GUT) recently traded at a 60% premium to net asset value, even though 90% of the yield is now simply a return of investors' capital: "I personally think the premium is unsustainable. It's off the wall."
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Company Description
The Funds primary investment objective is to achieve long-term growth of capital and income. The Fund will invest in ordinary stock and other securities of foreign and domestic companies involved to a substantial extent in providing products, services or e