Author: Innovative Income Investor

Closed end fund Gabelli Global Utilities and Income Fund (GLU) has added a bunch of ‘put’ dates to their 5.2% perpetual puttable preferred (GLU-B).

What this means is that during a 60 day period every 6 months during the next 2.5 years shares can be ‘put’ back to the CEF @ $50 plus the accrued dividend.

This fund has had many changes in coupon over the last 6 years or so, but it is now fixed at 5.20% and shares are trading at $50.25.

I posted this in the ‘headlines’ last night so if you read those you are already aware of this item.

I bought 100 shares just a minute ago at $50.30. Shares will be held for at least 18 months–maybe longer depending on interest rates. After the final ‘put’ date the issue turns into a perpetual with a 5.2% coupon. If interest rates are higher then the share price will likely drop as we no longer have the ‘put’ to hold the share price up. Right now it is a fairly meager coupon, but combined with the safety it is better than CDs and money markets.

2wr and others have mentioned this is the comments today.

NOTE–mother Fidelity is limiting buy orders to tiny quantities–I had to execute on eTrade.

As I had noted last week I was trying to add some shares of a fixed to floating preferred from one of the many issues available.

After trying unsuccessfully to buy one of the AGNC issues at MY price I opted for the Annally 6.95% ftf issue NLY-F at $25.14. Current yield around 9.60%. Obviously this one could be called–but as long as I buy in the $25 area I am not concerned–plenty of options out there for a replacement.

This is just 1 small move into a higher yielding option–instead of the very safe CDs and money market. I will pause a bit now from further buys as we watch more economic news this week. Right now I am leaning toward another small buy in the mREIT sector–but we shall see.