Fund with 10% yield is as good as gold
On top of that payout, my price target for GGN could deliver 18% gains in shares.
By Sam Collins, OptionsZone.com.
Despite what the bears say, gold remains very pricey -- and will stay there for a while. The yellow stuff continues to trade at more than $1,100 an ounce even as the U.S. dollar rises and holds back commodity prices.
If you’re looking to play gold, I have a doozy of a mutual fund for you: The Gabelli Global Gold, Natural Resources & Income Trust (GGN). This non-diversified, closed-end management fund invests in the equity securities of companies principally engaged in the gold and natural resources industries.
For starters, this fund yields a mammoth dividend of 10%! And as you’ll see in my technical analysis, shares of GGN themselves have a lot of upside potential as gold stays in high demand. Just check out this chart: showing the technical indicators:
GGN recently held on its support line and 200-day moving average, executing two of our internal Collins-Bollinger Reversal (CBR) buy signals, and broke through its 50-day moving average.
The short-term target is $19, but longer term it could run to the mid $20s. That’s a nice 18% gain above the price of GGN shares as of this writing!
If you’re looking to play gold, the Gabelli Global Gold, Natural Resources & Income Trust is a no-brainer.
For my daily stock picks based on technical analysis, check out my "Trade of the Day" posted every morning before the bell on OptionsZone.com.
- Top 10 Dow dividend stocks
- The best Fidelity funds for your 401k
- It's showtime for these 10 Oscar-inspired stocks
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.