OKE - DPG: 7% Yield On Defensive Utilities
2025-03-14 09:15:00 ET
Summary
- Utilities have risen nearly 20% over the past year, making them attractive for defensive, high-yield income through closed-end funds like DPG.
- DPG invests mainly in dividend-paying equities of utilities and infrastructure providers, offering a 7.18% yield.
- DPG's portfolio is heavily US-focused, with significant holdings in major utilities and midstream energy companies, showing strong price gains over the past year.
- Despite risks like non-diversification and interest rate sensitivity, DPG's deep discount to NAV and strong performance make it a speculative Buy.
Utilities, usually seen as a stodgy, defensive sector, have landed on the top of the heap over the past year, rising nearly 20%:
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