Nuveen Real Asset Income and Growth Fund (JRI) Stock

Nuveen Real Asset Income and Growth Fund provides investors exposure to infrastructure and real estate investments across equity, preferred, and debt securities. JRI increased its distribution by over 33% to narrow its discount and fend off activists, which now puts the distribution rate at around 12.2% and paid monthly. This higher distribution move worked, and the discount has narrowed materially; however, there are still reasons to continue to hold the fund even after this move.

Nuveen Real Asset Income and Growth Fund is a closed-end fund that offers exposure to 'real assets' such as real estate and infrastructure. The portfolio strategy includes exposure to pipelines, electric utilities, and other infrastructure-related holdings. The fund produces a high yield of 12.5% from its holdings. JRI's performance has been inconsistent, with a deteriorating NAV and reliance on market conditions for growth, making it a hold for now.

Investing in securities with exposure to real assets can hedge against inflation and stabilize portfolios. Nuveen Real Asset Income and Growth fund has seen strong performance and a substantial distribution increase. Energy companies leveraging AI and the energy transition may lead to investment opportunities in that sector.

The Nuveen Real Asset Income and Growth Fund offers investors a way to diversify their portfolio with hard assets and earn a high level of current income. The JRI closed-end fund has performed well, with a 7.96% return over four months, but has underperformed the S&P 500 Index. The fund's allocation to debt securities and limited exposure to real estate common equities may limit its ability to protect against inflation.

Nuveen Real Asset Income and Growth Fund has increased its monthly distribution, putting it back above where it was early in 2023 before the cut. The fund's performance has been lackluster, but expectations for utilities and real estate performance going forward are more promising. JRI trades at an attractive discount both on a relative and absolute basis, which could see further potential upside if CEF discounts narrow broadly after widening to historically wide levels.

The Nuveen Real Asset Income and Growth Fund specializes in investing in real assets such as real estate, infrastructure, and energy distribution systems. Short-term performance of real estate assets has been adversely affected by high mortgage costs and reduced demand for office space. Despite short-term fluctuations, real assets provide long-term protection against inflation, and the fund offers a high yield of 9.68%.

Cohen & Steers Real Estate Opportunities and Income Fund (RLTY) and Nuveen Real Asset Income and Growth Fund (JRI) are two closed-end funds focused on real assets. RLTY has a portfolio split between equities and preferred securities with an emphasis on REIT investments, while JRI invests in real asset-related companies around the world across the spectrum. Both funds are trading at attractive discounts and offer attractive monthly distributions.

Nuveen Real Asset Income and Growth Fund generates high levels of yield through a mix of high-coupon bonds and stocks of firms engaged in the business of energy & utilities infrastructure. JRI pays steady monthly dividends along with a double-digit annual average yield over the long run. However, it fails to generate positive price growth. High inflation, rising interest rates, and a looming economic recession will probably send this fund relatively lower than traditional funds or high growth stocks.