Reeves Utility Income Fund.

I believe I have posted on this fund in the past, but thought I would update some info on the fund and inform new blog readers as well.  Reeves Utility Income fund is in my opinion one of your best income choices out there. It provides monthly income and also contains some income securities that frankly I like and believe are choice for long term income.  The securities in the fund also tend to be good at raising their dividend payout regularly as well.

 

The fund is a closed end fund, which basically means the shares are sold on the open market and normally the fund does not issue additional shares.  The only drawback to this fund is a higher annual expense ratio than I like, but the advantages of the fund outweight the one big drawback in my opinion.  You will not get rich owning this fund, but on the other hand you will get steady monthly income and solid as a rock capital preservation.

 

The most interesting part of this fund is the fact it goes beyond utility stocks to find income.  Holdings include electric utilities, gas utilities, MLP pipelines, telecom,  some tobacco and agency reits, preferred stocks, and lastly some foreign holdings in the utility area.  When I look down the list of holdings in this fund I frankly find few securities I do not like in a income fund. For instance I do not see Berkshire Hathaway as a serious income holding.

 

All in all if you are looking a fund for income to spend and depend on this is it. Good for retirees and maybe even IRA's.  The symbol is UTG.   Website is http://www.utilityincomefund.com/ .

 

The fund increased it's payout to 12.5 cents monthly in April of this year and now at the current price of $24 to $25 per share pays you just over 6%. The dividends are qualified for the lower tax in the US as well, so depending on your tax you will owe no more than 15% federal tax. In fact many people currently get this dividend federal tax free.

 

I do not hold UTG in any account.