UTG: Valuation Normalized, Attractive Risk-Reward Raising The Fund To A Buy (Rating Upgrade)

Oct. 28, 2023 7:59 AM ETReaves Utility Income Trust (UTG)UTG46 Comments
Macrotips Trading
5.98K Followers

Summary

  • I was previously cautious on the Reaves Utility Income Fund due to valuations.
  • However, with valuations normalized, the risk/reward looks more attractive.
  • The UTG fund pays an attractive 9.5% distribution yield that may appeal to long-term income investors.

M40 Motorway light trails and power cables at dusk, Oxfordshire, England, United Kingdom, Europe

EP-stock/E+ via Getty Images

The last time I wrote about the Reaves Utility Income Fund (NYSE:UTG) was almost a year ago, when I urged investors to remain cautious, as sector valuations were still too high. Since my article, the UTG fund has

This article was written by

5.98K Followers
Author of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of XLU either through stock ownership, options, or other derivatives. 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.

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.

Recommended For You

About UTG Ticker

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Volume
Compare to Peers

More on UTG

Related Stocks

SymbolLast Price% Chg
UTG
--