Reaves Utility Income Fund

W.H. Reaves & Company, Inc. (dba Reaves Asset Management) - Investment Management An investment advisor specializing in utilities and energy infrastructure, founded in 1961 Approximately $2.7 billion in total assets under management (as of 09/30/2016) 37-year track record for institutional clients Portfolio managers are supported by a highly experienced management team Research team averages over 20 years of industry experience Philosophy Reaves Asset Management believes that an information advantage can be created when experience analysts focus their fundamental, quantitative and qualitative, bottom-up research within the utility sector. Furthermore, the identification of utility companies that are disciplined enough to supply growing dividend income to their shareholders is a key component in the management process.

Antero Midstream Partners

Berkshire Hathaway has a substantial stake in American utilities and infrastructure companies. This industry offers income stability for retirees as they experience inelastic demand through economic cycles. Two +7% yields for your retirement with income safety and sustainability.

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American Electric Power Company

Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure

BlackRock Utilities Infrastructure & Power Opportunities Trust

SPDR S&P 500 ETF Trust

Cohen & Steers Infrastructure Fund Inc

Utilities Select Sector SPDR Fund

Utilities are currently cheap compared to their historical average valuation (as well as compared to the broader market) and offer both growth potential and stock price upside. Federal legislation incentivizing decarbonization and electrification will fuel massive growth in the utility sector. I highlight my three favorite utilities and utility-adjacent stocks to buy during the current dip in utility stock prices.

Utility Stocks Should Beat The Market: My 3 Top Buys

Statement Pursuant to Section 19(a) of the Investment Company Act of 1940 DENVER, CO / ACCESSWIRE / August 31, 2023 / On August 31, 2023, 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 August 18, 2023. 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.

Reaves Utility Income Fund Section 19(a) Notice

Ares Capital

BlackRock Science & Technology

Crescent Capital BDC Inc

Calamos Dynamic Convertible & Income Fund

Calamos Global Total Return Fund

Eaton Vance Enhanced Equity Income Fund II

Eaton Vance Tax Advantaged Global Dividend Opportunities Fund

Eaton Vance Tax-Advantaged Dividend Income Fund

Guggenheim Strategic Opportunities Fund

John Hancock Tax-Advantaged Dividend Income Fund

JPMorgan Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF

PIMCO Corporate & Income Strategy Fund

PIMCO Dynamic Income Fund

John Hancock Premium Dividend Fund

PIMCO Corporate & Income Opportunity Fund

Global X NASDAQ 100 Covered Call ETF

Cohen & Steers Quality Income Realty Fund

Royce Value Trust

Global X Russell 2000 Covered Call ETF

Special Opportunities Fund Inc

Credit Suisse X-Links Crude Oil Shares Covered Call ETN

XAI Octagon Floating Rate & Alternative Income Term Trust

Perfection is defined as being complete and correct in every way, and can be pursued in various fields, including art and investing. For years now, I have been employing all my strength in investing in CEFs and ETFs, plus some “flirtations” with ETNs and BDCs. My portfolio is certainly not perfect, but acceptably fulfills the task for which it was designed: namely, to provide me with a steady stream of dividends over time.

My 9% Income Portfolio - Nobody Is Perfect

Reaves Utility Income Trust is a closed-end fund that focuses on utility stocks for income generation. Utility stocks are facing high valuations collectively, which may limit UTG's performance in the future as UTG relies heavily on capital gains for its dividend distributions. Investors with long-term horizon should still hold this as the fund is likely to continue to deliver good results in the long term.

UTG Has A Great Track Record But Utilities Aren't Exactly Cheap

Reaves Utility Income Trust aims to provide high levels of after-tax total return through dividend income and capital appreciation. UTG has underperformed in terms of price appreciation but has yielded positive total returns over the past five years. We think that constituent companies will find it difficult to out-earn their cost of capital in a rising interest rate environment.

UTG Shows The Bind Utilities Are In

You and I, my fellow contrarian, are old enough to remember when “I bonds”—US savings bonds designed to protect you from inflation—yielded 9.62%.

I Bond Yields Have Tumbled: Buy These Bonds Instead

Solar Capital

"Retirement is like a long vacation in Las Vegas. The goal is to enjoy it to the fullest, but not so fully that you run out of money."– Jonathan Clements. Do you plan to slowly burn your nest egg for financial warmth in retirement? Consider dividends instead to never have to worry about running out of money.

2 Magnificent +8% Yields For Your Retirement

Calamos Convertible Opportunities And Income Fund

Calamos Strategic Total Return Fund

Eaton Vance Senior Floating Rate Fund

Eaton Vance Floating-Rate Income Trust

Nuveen Floating Rate Income Fund

Nuveen Credit Strategies Income Fund

Nuveen Floating Rate Income Opportunity Fund ETF

Nuveen Short Duration Credit Opportunities Fund

Nuveen Senior Income Fund

We review CEF market valuation and performance through the second week of July and highlight recent market action. CEFs had a good week overall as NAVs gained, however, discounts remain sluggish. The net income profile of some CEFs has turned negative, owing to a high cost of leverage.

CEF Weekly Review: (Some) CEF Net Income Turns Negative

Vanguard Utilities ETF

Berkshire Hathaway is in the news again for buying utility assets. While Warren Buffett likes to cobble together a portfolio from individual opportunities, you don't have to.

You Don't Have to Pick a Winner in Utilities. Here's Why.

DENVER, CO / ACCESSWIRE / July 10, 2023 / The Reaves Utility Income Fund (NYSE American:UTG) announced today the next three, monthly, distributions at a rate of $0.19 per common share per month, unchanged from the per share rate paid for the previous quarter. As of July 5, 2023, the Fund's market price was $27.83 per share and its net asset value was $27.80 per share.

Reaves Utility Income Fund Announces Regular Monthly Distribution of $0.19 per Share

The Reaves Utility Income Trust is underperforming due to falling energy prices and rising interest rates, which are affecting its high-dividend-yielding investments in the utility industry. UTG's external leverage strategy, which has increased from 16% in 2020 to 24% in 2023, is magnifying capital depreciation and increasing exposure to struggling utility equities. UTG's distribution policy is unsustainable as it relies heavily on capital gains to maintain dividends, despite falling stock values; this puts the current 8.3% yield at risk.

UTG: 8.3% Dividend At Risk

DNP Select Income Fund Inc

DNP Select Income and Reaves Utility Income are both solid long-term choices in the utility/infrastructure closed-end fund space. UTG gets the edge over DNP due to its valuation, as the discount/premium can play a significant role in the outcome for investors. Buying DNP at a premium of below 10% is generally a good buying opportunity, but even more ideally, it would be at a discount which doesn't come around often.

DNP Vs. UTG: 2 Solid Long-Term Infrastructure Income Plays

AT&T

T-Mobile US

Verizon

Interest rates have likely peaked as we are at the very end of the "interest rate hiking cycle" by the Fed. Simultaneously, dividend yields may have already peaked.

Now Or Never For Dividend Stocks

Wells Fargo Utilities and High Income Fund

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.

UTG Vs. ERH: Two 8% Yielding Monthly Pay CEFs

Reaves Utility Income Trust is a safe way to play the economic uncertainty and the stagnant stock market. Utilities make up 65% of the fund with other investments primarily in telecoms and real estate.

Reaves Utility Income Trust: Safe Way To Play A Stagnant Market

My Income Portfolio And Return Of Capital.

My Income Portfolio And Return Of Capital

The outlook for the utility sector remains weak, these companies face tougher regulations as well as increasing consumer defaults. The Reaves Utility Income Trust's use of leverage isn't effective in a higher rate environment, this fund has been forced to use the principal to continue to pay monthly distributions.

Reaves Utility Income Trust: Not Built For The Current Investing Environment

DENVER, CO / ACCESSWIRE / April 6, 2023 / The Reaves Utility Income Fund (NYSE American:UTG) announced today the next three, monthly, distributions at a rate of $0.19 per common share per month, unchanged from the per share rate paid for the previous quarter. As of April 4, 2023, the Fund's market price was $28.46 per share and its net asset value was $28.24 per share.

The Reaves Utility Income Fund Announces Regular Monthly Distribution of $0.19 Per Share

Are you worried about outliving your savings in retirement? If you let Mr. Market dictate your retirement, you may be working forever.

Yes, You Can Retire With Dividends: 2 Yields Up To 11%

The world seeks complexity, but simplicity often trumps complexity. For my investment goals, I have made the choice to focus mainly on CEFs and ETFs, carefully weighing their merits and drawbacks.

My Income Portfolio - Keep It Simple, Sweetheart

Reaves Utility Income Fund has underperformed the Utilities Select Sector SPDR ETF over time. However, there are potential opportunities for UTG investors to exploit when it gets hammered more steeply than the XLU.

UTG: Now's Your Chance To Board

Cohen & Steers Reit And Preferred Income Fund Inc

Closed-End Funds, or CEFs, are a popular form of monthly paying stocks. Most, however, are dangerous and lack income dependability, due to destructive use of Return of Capital (unsustainable dividends that fall over time).

Five 7+%-Yielding Monthly Paying Retirement Dream Stocks

Medical Properties Trust

New York Community Bancorp

The Dividend Harvesting Portfolio is now generating $825 in annual dividends, yielding 8.09%. The Dividend Harvesting portfolio has a 70.75% record of finishing the week in the black since its inception, 75/106 weeks.

Dividend Harvesting Portfolio Week 106: $10,600 Allocated, $825 In Projected Dividends

DNP and UTG are exceptionally popular CEFs for income investors. We had suggested a switch the last time around when we covered these two and we take a look at how the trade has played out.

News for Reaves Utility Income Fund ETF (UTG)