Published Fri, 08 May 2020 08:35:00 -0400 on Seeking Alpha
Utilities and infrastructure companies will provide a very defensive source of income.
This fund has had no distribution cuts since inception and it survived the Great Recession with its distribution intact.
UTG's dividend has grown every year since 2004 and has been a dependable source of income.
UTG provides an opportunistic entry point and a monthly-pay dividend yield of 7.3%.
Co-produced with PendragonY
During periods of economic uncertainties, investing in high-yielding defensive sectors is one of the best investment strategies. Reaves Utility Income Fund (UTG) invests in the utility sector which is a non-cyclical sector that invests in some of the best utility companies, including electricity, water, telecom, heating and internet providers. The fund has had no distribution cuts since inception and it survived the Great Recession with its distribution intact. That's proof that the management team can handle uncertain times. The great news today is that investors can buy UTG at a great price.
Let’s review UTG’s performance
Reaves Utility Income Fund is a closed-end fund that invests in utilities and infrastructure companies to provide a high level of after-tax dividend income. With so many people in the U.S. and around the world staying and working from home, utilities will provide a very defensive source of income. So how has the fund done since inception?
As we can see in the chart above, UTG has most years beaten other funds in its category in either NAV performance, price performance, or both. The fund has beaten similar funds on NAV growth in every year other than 2012. While the share price is somewhat at the whim of the market, we see NAV performance as an indicator of management performance, so UTG management is doing a good job.
Source: Portfolio Visualizer performance of $10K investment
Using Portfolio Visualizer, we can compare a $10,000 investment in UTG and Utilities Select Sector... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|COHEN & STEERS INFRA FUND||27.26||0.0||0.00||0.00||6.88|
|ROYAL DUTCH SHELL A||68.62||27.1||2.59||3.76||5.35|
|ROYAL DUTCH SHELL B||70.13||0.0||0.00||3.76||5.23|
Older articles featuring Cohen & Steers Infra Fund (UTF):My Income Portfolio - The Dividend Dilemma
The Retiree's Dividend Portfolio - John's April Update: The Impact Of Dividend Cuts
PCI: Rare Double-Digit Yields From An Elite Fund
Income Lab Ideas: Dividend Reinvestment Plan
The Retiree's Dividend Portfolio - John's January Update: Markets Aren't Immune To The Coronavirus
The Retiree's Dividend Portfolio - John's Year-End Review
The Retiree's Dividend Portfolio - John's November Update: Complete Portfolio Overview
The Retiree's Dividend Portfolio - John's September Update: Complete Portfolio Overview
The Retiree's Dividend Portfolio - John's August Update: Portfolio Value Reaches A Record High
GHII: A High-Dividend Global Infrastructure Equity ETF