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UTF: 8%+ Yielding Infrastructure Fund For The Long Term

Published Wed, 04 Nov 2020 10:06:33 -0500 on Seeking Alpha

Seeking AlphaClosed End FundsUTF: 8%+ Yielding Infrastructure Fund For The Long TermNov. 4, 2020 10:06 AM ET|| About: Cohen&Steers Infrastructure Fund (UTF), Includes: AMT, CCI, CNI, EBBNF, EBRGF, EBRZF, ENB, ENBA, ENBBF, KMI, NEE, TCANF, TNCAF, TRP, TRPEF, UNP, XEL, XLUby: Nick AckermanNick Ackerman CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryUTF is a solid performing CEF for a long-term investor.
Utility/infrastructure remains an attractive sector to invest in for income investors.
UTF provides exposure to mostly equities, while providing an enticing 8% yield.
Written by Nick Ackerman, co-produced by Stanford Chemist
Cohen & Steers Infrastructure Fund's (UTF) share price continues to trade near parity of the NAV per share. This makes it hard to come out and say this fund is worth buying today. However, one could still do a lot worse than buying a long-term winning closed-end fund. Even while UTF is at a slight premium, it can be a rewarding long-term hold.
The utility/infrastructure space remains relatively meager for the year. If using the Utilities Select Sector SPDR ETF (XLU), on a YTD basis we are looking at a return of -1.83%. This has been in the bottom half of sector results based on the other SPDR ETFs.

(Source - Seeking Alpha)
Of course, that means now could be one of the better times to be buying when the sector is underperforming the others. That being said, UTF also has a focus on global positions and not just the U.S. market. The fund also invests a small amount in preferred and bonds. The end result is that something like XLU not being a perfect barometer or benchmark of performance. Still, using it as a rough gauge can work.
UTF's objective is "total return, with an emphasis on income through investment in securities issued by infrastructure companies." They define infrastructure companies as those that; "typically provide the physical framework that society requires to... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ENBRIDGE 34.70   19.7 1.76 2.21 6.38
KINDER MORGAN 20.42   20.6 0.99 1.00 4.94
TRANSCANADA 49.89   14.6 3.42 2.25 3.14
XCEL ENERGY 63.07   25.7 2.45 1.62 2.57
UNION PACIFIC 167.71   19.9 8.42 3.88 2.32
NEXTERA ENERGY 220.74   31.7 6.96 5.00 2.29
CANADIAN NATIONAL RAILWAY 92.36   20.2 4.58 1.62 1.73
AMERICAN TOWER 218.85   66.3 3.30 3.68 1.70


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