UTG Stock News & Sentiment

Every income portfolio must have anchor investments that provide capital gains and steady income. We dig deeper into two wonderful choices for income over the long run. I find income all over the market and share ideas with you nearly daily.

Reaves Utility Income Trust provides investors exposure to a pool of mostly utility investments and has seen some strong total return performance. UTG's performance has been bolstered by utility companies that are set to benefit from AI-driven infrastructure power demand, but current valuations and lack of discount warrant some caution. UTG remains a solid long-term investment, offering investors a monthly distribution, but perhaps being patient or dollar-cost averaging in could be a more appropriate approach.

Reaves Utility Income Trust offers attractive long-term value with strong performance, outpacing XLU and SPY in price appreciation and total return over the past year. Despite recent price increases, UTG trades near fair value with a slight discount to NAV, supported by a growing NAV and an efficient portfolio strategy. UTG's 6.8% dividend yield is well-covered by earnings, making it a reliable income source, especially for retirees, with consistent dividend growth over the past decade.

The Reaves Utility Income Fund offers high, consistently rising distributions, with a current yield of 7.23%. UTG's portfolio focuses on utilities and infrastructure, leveraging expertise to outperform its sector benchmark, despite slightly higher volatility. UTG's current slight premium is not a concern unless it exceeds 2%; buying at a discount is preferable but not always predictable.

I am very bullish on UTG for 2025, as declining risk-free rates make income-producing assets like UTG more attractive for yield-seeking investors. UTG's strong distribution history and tax-advantaged dividend income make it a compelling alternative to declining yields in money markets and CDs. The utility sector, a significant part of UTG's portfolio, stands to benefit from increased CapEx in A.I. data centers and favorable refinancing conditions.

UTG has significantly outperformed the market since my last buy rating earlier this year. However, it has pulled back sharply over the past week. I revisit the fund to see if it is a good buy on the dip.

Utilities sector CEFs such as Reaves Utility Income Trust offer a high yield, defensive income with professional management. The UTG closed-end fund boasts strong performance with a 29.7% YTD return and 35.7% 1-year return, outperforming the Utilities sector and S&P 500. This article details long and short-term performance, exposure to the Utilities sector, dividend growth, and yields for UTG and peers DPG, GUT, and MEGI.

Statement Pursuant to Section 19(a) of the Investment Company Act of 1940 DENVER, CO / ACCESSWIRE / November 29, 2024 / On November 29, 2024, the Reaves Utility Income Fund (NYSE American:UTG) (the "Fund"), a closed-end sector fund, paid a monthly distribution on its common stock of $0.19 per share to shareholders of record at the close of business on November 15, 2024. The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder.

Utility stocks have outperformed in 2024, driven by their durable 'hard assets' which offer investors long-tail value, inflation protection, and reduced competitive pressure. The Reaves Utility Income Trust is highly attractive due to its strong track record, high yield, and focus on utility and 'hard asset' investments. UTG's dual mandate aims for high income and total returns, and management has successfully produced just that since inception.