ERH: Some Concerns About The Distribution But Otherwise A Good CEF

Summary

  • Utilities have long been a favorite asset class of conservative investors due to their financial stability and high yields.
  • Allspring Utilities and High Income Fund invests in a portfolio of both utilities and high-yield bonds, which works pretty well for both high income and a degree of safety.
  • The closed-end fund is a bit heavily weighted towards one company, but it is reasonably diversified overall.
  • The distribution does not appear to be sustainable and may need to be cut in the near future.
  • The valuation is reasonable, but investors may want to wait a bit until we get more clarity on the distribution.
  • This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Learn More »

Confident male engineer using a laptop in front of electric power station

SimonSkafar

For a very long time, utilities have been among the favorite investments of conservative investors, such as most retirees. There are some very good reasons for this, including the fact that utilities tend to be very financially stable and have fairly high

ERH Top Ten Holdings

CEF Connect

ERH Asset Allocation

CEF Connect

ERH Bond Portfolio Credit Ratings

CEF Connect

ERH Dividend History

CEF Connect

ERH Dividend History TTM

CEF Connect

ERH Distributions by Type

Fidelity Investments

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