Gabelli Dividend & Income Prices Preferreds

As many of you already know the new preferred from the Gabelli Dividend & Income Fund (NYSE:GDV) has priced at 5.375%.

We try to not post on the pricing until the SEC documents have been filed as on occasion there is a change–but they have not been filed as of this moment.

Data on pricing comes from a company press release where details are sparse, but it is fair to assume that the normal terms will be in effect–optional call after 5 years, quarterly dividend payments etc.

The press release is here.

The issue will trade on the OTC Grey market, but a ticker is not yet announced.

We will try to pick up a little for the sock drawer (referring to those issues we buy and put away to be held for a very long time)–hopefully we can buy it a little below $25.

The company announced they will be calling in some auction rate preferreds, which is not a publicly traded preferred.

17 thoughts on “Gabelli Dividend & Income Prices Preferreds”

      1. Vanguard fixed preferred desk. Vanguards stable of market makers are not offering today (tomorrow promised) but the fixed desk told me what the security was trading. Tomorrow I will place a limit order and walk away.

  1. I recently purchased some NCV-A at $24.99. I believe this is just is as high quality as the new GDV issue but the NCV yield is better and it goes ex dividend for .34375 next week. At this point I’ll get excited about the GDV issue if it trades down below $24.40.

    Any thoughts on the quality of NCV vs GDV preferred that I might be overlooking ?

    1. Hi Retired—I own both of the AllianzGI issues–in the sock drawer holdings. Super quality preferreds (the funds themselves kind of suck though–of course I would never own them).

      1. That’s what I was thinking Tim, which begs the point: If GDVVP Trades above par why bother buying it. Why not just go out and buy more NCV and get a better yield for the same quality ? Diversification might be an argument but they both appear equally safe.

        Great site Tim. It’s the first financial site I look at every morning. I get information here that can’t be found elsewhere.

        1. Retired – Agreed. NCV-A shows Ask=25.39 currently, which is YOC=5.54%. NCZ-A shows Ask=25.03, YOC=5.49%. Both better than GDVVP at 5.375% (actually less if you have to buy above par).

          The two Gabelli pfd’s I own (GAB-J, GGT-E) both have a YOC relative to the Ask in the 5.1 to 5.2% area.

          When I started buying pfd’s in 2012, I followed Tim’s advice at the time which was to buy in the Grey Market with a limit order below par. That just doesn’t work any more. I guess too many people know the secrets now?

          1. Well one can only wait and see what it actually trades for on our brokerages. It’s definitely a high quality issue but if it’s not a deal I’m going to pass. If we get to that $24.40 range I’ll be a buyer otherwise I’ll pass.

            1. Oh sure. But it’s extra work to watch the prices and wait for a good price. Up until maybe 2 years ago, you could be assured of getting a grey-market price below par. But now, yields on new issues are relatively low, but people are paying above par anyway. It makes more sense to check the current yields of what you already hold, to see where the best yield really is. I’m still working and I don’t really have the time for that. I wish I could set up a real time tracker on one of the brokerage sites to do exactly that.

    2. Retired, Thanks for the “heads up” on NCV-A. I bought some at $25.00 since my order for GDVVP didn’t execute at par. I have an alert set on it if it ever hits $24.50.

  2. NEWTZ is trading ~$27. Wonder if people are getting it mixed up with NEWT…? I sold mine for $26.96. Now I have to find a replacement :*/

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