UTG: Still Reasonably Valued Despite Recent Price Run
Portfolio Pulse from
Reaves Utility Income Trust (UTG) remains reasonably valued despite recent price increases, offering a 6.8% dividend yield well-covered by earnings. It has outperformed XLU and SPY in the past year, with a slight discount to NAV and consistent dividend growth.
February 09, 2025 | 12:45 pm
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POSITIVE IMPACT
Reaves Utility Income Trust (UTG) remains attractive with a 6.8% dividend yield, outperforming XLU and SPY. It trades near fair value with a slight NAV discount, supported by a growing NAV and efficient portfolio strategy.
UTG's strong performance, outpacing XLU and SPY, and its well-covered 6.8% dividend yield make it attractive. Despite recent price increases, it remains near fair value with a slight NAV discount, indicating potential for continued investor interest.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
UTG has outperformed SPY in price appreciation and total return over the past year, highlighting UTG's strong performance relative to the broader market.
UTG's outperformance compared to SPY suggests that UTG is a more attractive option for investors seeking higher returns, potentially leading to a shift in interest away from SPY.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
UTG has outperformed XLU in price appreciation and total return over the past year, indicating UTG's stronger performance in the utility sector.
UTG's outperformance compared to XLU suggests that investors might prefer UTG over XLU, potentially leading to a relative decline in interest for XLU.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50