2024-07-11 14:30:00 ET
Summary
- Reaves Utility Income Trust investors have endured a challenging two years.
- Fed Chair Jerome Powell's recent congressional testimony suggests the worst is likely over.
- UTG's recovery momentum has been robust. The Fed's rate cuts could fuel UTG to rally further.
- UTG's distribution rate of more than 8% should appeal to income investors reallocating to its high-quality holdings.
- I argue why investors who missed adding UTG's lows in late 2023 and early 2024 should capitalize before UTG potentially breaks out higher.
UTG: Recovery Already Underway
Reaves Utility Income Trust ( UTG ) investors who picked UTG's lows in early 2024 have benefited as it resumed its uptrend momentum. However, UTG has underperformed the S&P 500 ( SPX ) ( SPY ) since my previous bullish UTG update in January 2024 . Despite that, I've assessed that UTG's valuation and bullishness have remained intact. Therefore, income-focused investors aiming for regular monthly distributions should still find UTG's setup relatively attractive....
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UTG: Fed Just Provided More Fuel To Its Rally