GAM: 6% CY And An A1 Credit Rating

General American Investors Company offers stable total returns, outperforming peers with a 5-year NAV return of 14.2% and a 10-year return of 13.6%. GAM trades at an 11% discount to NAV, with a low 1.07% expense ratio and a robust 935% asset coverage ratio, signaling financial strength. The preferred stock GAM.PR.B, rated A1 by Moody's, provides capital protection but currently yields among the lowest in its peer group. I maintain a 'hold' rating on both GAM and GAM.PR.B, given current yield levels and discount relative to historical averages.

In this short article, we will take a look at General American Investors Company Inc. (GAM), its financial metrics, and its preferred stock (GAM.PR.B), which, at the time of writing, trades below par.