Mine This High-Yielding Gold Fund

by Sam Collins | May 28, 2010 10:56 am

Gabelli Global Gold, Natural Resources & Income Trust (AMEX: GGN[1]) — This non-diversified, closed-end management fund invests in the equity securities of companies principally engaged in the gold and natural resources industry. GGN provides a steady dividend return, as well as a way to participate in major metals mining stocks.

I have chosen GGN as the Trade of the Day multiple times in the past year and a half when the stock approached its 200-day moving average[2]. 

Every recommendation turned out to be close to the low of a cycle, rewarding buyers with not only a good trade, but an excellent dividend yield for those who held the stock.

On May 6[3], I identified the head-and-shoulders formation with a downside target of $16, and recommended that GGN be bought again at that price. GGN ran to $15 before reversing, creating a double-bottom[4] and a buy signal from the stochastic. 

The $1.68 dividend is paid monthly, and provides an annualized dividend yield of more than 10%. 

GGN is still in a powerful bull market with a target in the mid-$20s.

 

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Source URL: https://investorplace.com/2010/05/stock-picks-gabelli-global-gold-natural-resources-income-trust-ggn/

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