UTG: Tax-Efficient Dividends And Steady NAV Growth Reinforce Strength

Cain Lee
6.19K Followers

Summary

  • Reaves Utility Income Trust offers a compelling mix of stable income, capital appreciation, and a 6.6% yield, with monthly dividends ideal for income-focused investors.
  • The fund’s diversified utility and infrastructure holdings, strong performance, and dividend growth support my continued buy rating.
  • While leverage and interest rates pose risks, UTG’s NAV growth and history of weathering market volatility reinforce its long-term appeal.
  • Tax-efficient distributions and consistent dividend coverage make UTG especially attractive for retirees seeking reliable, tax-advantaged income.

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Overview

It can be a difficult task to find a high yielding asset that can provide both income stability and the potential for capital appreciation. However, Reaves Utility Income Trust (NYSE:UTG) differentiates itself from other income funds due

This article was written by

6.19K Followers
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UTG 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.

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