CEG - UTG: A Monthly Distribution While Waiting For Continued Recovery

2024-06-21 15:31:46 ET

Summary

• The utility sector has continued to face pressure with a higher rate environment still, but there has been a bit more promise lately with the sector rising.
• Reaves Utility Income Trust is a solid closed-end fund in the utility space with a history of raising distributions.
• UTG's distribution yield is currently at 8.32%, which I believe is attractive and sustainable.

Written by Nick Ackerman, co-produced by Stanford Chemist.

Utilities have been starting to show a bit more life in the last month or so, but overall, utilities still look quite depressed. The utility sector has continued to face some pressure with the "higher for longer" interest rate environment we find ourselves in. Around the world, we are starting to see rate cuts, but at least those don't seem necessary in the U.S. just yet. In the U.S. we continue to see inflation remaining sticky and the jobs market remaining strong, leading to a resilient economy overall....

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