FIF: Bet On Growing Need For Infrastructure

Power Hedge
Investing Group Leader

Summary

  • Energy infrastructure companies tend to be solid for income investors due to their high yields and stable cash flows.
  • FIF is one of the better closed-end funds in this sector.
  • The fund is mostly focused on natural gas pipelines and electrical utilities, which have a better future than other fossil fuel companies.
  • The fund did see its NAV decline last year and failed to cover its distribution but the recent rebound in midstream stocks has likely improved things.
  • The fund trades at a fairly attractive discount to NAV, so the price is reasonable.
  • This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Learn More »
Pipelaying crane lowers a section of pipe into a trench. Construction of gas pipeline to new LNG plant. Crawler bulldozer with side boom operation install natural gas pipeline and oil pipes
Photo by Maksim Safaniuk/iStock via Getty Images

One of the best and most common things to invest in for income is infrastructure. This is also a thing that has been in the news a great deal lately due to the Biden Administration pushing an infrastructure plan in an

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This article was written by

Power Hedge
15.65K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I am/we are long MPLX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was originally posted to Energy Profits in Dividends on May 26, 2021. Subscribers have had since that time to act on it.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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