Stable And Fat 7.71% Post-Thanksgiving Dividends From GBLIL

Global Indemnity (GBLI) is an insurance company with a respectable credit rating. It’s my view that GBLI is not likely to be a huge credit risk in the near future. GBLI has two securities, GBLIL and GBLIZ, which are baby bonds. I normally cover preferred shares. However, baby bonds have more protection than preferred shares. Further, if GBLI were to release preferred shares they would be subordinate to both baby bonds. I have no current evidence that GBLI intends to issue preferred shares.
For investors following my preferred share ratings, here is my guide to preferred shares.
Baby bonds Recent events had GBLIL drop into the buy zone and it’s also currently better than GBLIZ in my view. I will be focusing on GBLIL. Note: a large portion of my analysis will be done on charts. This is so investors have a better understanding of how GBLIL works. It’s a good security for the buy-and-hold investor. GBLIL has been a steady baby bond. I believe
Guide to price chart at the end of article

Source: CWMF
GBLIL dropped into the buy zone over the last week, but it did rally rather quickly. The prices stayed low enough Monday morning to be within the buy range and then hovered right above $25.60:

Source: Schwab
While the price has come above my buy zone, it is still a good investment for the buy and hold investor. My price targets take trading into account. GBLIL is comparatively stable and difficult (to preferred shares and other baby... Read more

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