NXG: Nearly 14% Yield, Stable Performance, Is It A Buy?

2025-05-25 08:00:00 ET

Summary

• NXG NextGen Infrastructure Income Fund offers high monthly income and diversified infrastructure exposure, benefiting from AI-driven energy demand.
• NXG currently pays a generous distribution yield of just below 14% and trades at a small premium.
• The fund has performed very well on a five-year basis; however, the long-term performance over 10 years has been subpar, partly due to the oil price crash in 2014.
• In our assessment, the NXG fund is not cheap based on many metrics, but not too expensive either, and it is a Hold.

Introduction:

NXG NextGen Infrastructure Income Fund ( NXG ) is a closed-end fund, or CEF, that was incepted as of September 2012. The fund's main objectives are to provide a high current income distributed on a monthly basis and also seek long-term capital appreciation....

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