Allspring Utilities and High Income Fund (ERH) Stock

The Allspring Utilities and High Income Fund is an underfollowed closed-end fund that invests in a 70/30 portfolio of utility equities and junk bonds. The fund has beaten the S&P 500 Index since March on a total return basis, which is impressive for a utility-focused fund. Utilities are probably better than junk bonds for investors due to junk bonds only having a very low after-tax yield in an environment of rising inflation.

Allspring Utilities and High Income Fund focuses on a portfolio of utilities and high-yield bonds, offering income-oriented investors a rather unique mix. The fund has seen a strong recovery from last October's market swoon, but with a double-digit discount remaining, there is potential for further upside. ERH's distribution policy adjusts monthly based on 7% of the fund's average NAV, with the potential for higher payouts as the fund recovers.

The Allspring Utilities and High Income Fund offers investors a high level of current income with exposure to the upside potential of common equity investments. The ERH closed-end fund's performance over the past three years has been disappointing, underperforming the global utilities index. The fund invests in a combination of utilities and junk bonds, with a focus on utility stocks. However, it has recently cut its distribution and has struggled to cover its distributions in the past.

ERH is a closed-end fund that invests in utility and high-yield bonds and offers investors a monthly distribution based on a managed policy. The fund's discount has widened, making it a more attractive option for investors. ERH's distribution policy varies monthly but is predictable, and it rewards shareholders when things are going well.

Reaves Utility Income Trust yields 8.27% and Allspring Utilities and High Income Fund yields 8.49%, and both closed-end funds pay monthly. Both funds hold Utilities as their main sector exposure.