UTG: Relative Safety In Valuation For Utilities Going Into 2025

John Bowman
3.47K Followers
(10min)

Summary

  • The Reaves Utility Income Fund offers high, consistently rising distributions, with a current yield of 7.23%.
  • UTG's portfolio focuses on utilities and infrastructure, leveraging expertise to outperform its sector benchmark, despite slightly higher volatility.
  • UTG's current slight premium is not a concern unless it exceeds 2%; buying at a discount is preferable but not always predictable.
  • UTG is suitable for aggressive and moderate investors seeking defensive positions, with a recommended allocation of up to 5% in an income portfolio.

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Ирина Мещерякова

Introduction

The Reaves Utility Income Fund (NYSE:UTG) is a closed-end fund run by Reaves Asset Management that invests in infrastructure and utilities. It is notable for its high, consistently rising distributions.

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This article was written by

3.47K Followers
Investment advisor, research analyst, and economics educator from Southern California. I have an obsession with portfolio management, income investing, and alternatives. "History does not repeat, but it does instruct." — Timothy Snyder, On Tyranny

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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