SOJE - UTG: Data Center AI Demand To Boost Utility Companies Big Steady 8.2% Yield
2024-07-27 03:17:06 ET
Summary
- The Reaves Utility Income Fund offers a big, steadily-growing, monthly-paid, tax-advantaged distribution (current yield is 8.2%).
- It also has an important tie-in with growing energy demand from datacenters and artificial intelligence (basically, cloud AI demands a lot of utility-company energy).
- In this report, we review the fund, its advantages (tax favorability, monetary policy impacts and data center AI tailwinds) as well as risks (expenses, leverage, price premium).
- We conclude with our strong opinion on who might want to invest.
The Reaves Utility Income Fund ( UTG ) offers a big, steadily-growing, monthly-paid, tax-advantaged distribution (currently yielding 8.2%). And this closed-end fund ("CEF") does so by owning utility-sector stocks (known for lower volatility and steady dividend payments). In this report, we review the fund (overview, philosophy, investment process), its advantages (tax favorability, monetary policy impacts and artificial intelligence tailwinds) as well as risks (expenses, leverage, price premium). We conclude with our strong opinion on who might want to consider investing....
UTG: Data Center AI Demand To Boost Utility Companies, Big Steady 8.2% Yield