7% Yield, Defensive Utilities CEF, Monthly Payer

Utilities are boring, right? Well, not in pullback years, like the one we're having in 2022. In fact, the Utilities sector is the 2nd-leading sector so far in 2022, right behind the Energy sector. It has a YTD price performance of -2.04%, vs. -19.3% for the S&P 500 (SPY). This fund is a Utilities-focused CEF yielding 7.3% that pays monthly. The Utilities sector is the 2nd-leading sector so far in 2022. It is priced slightly below par, below its 1- and 3-year average premiums to NAV.

If you'd prefer not to try to stock-pick, you can get broader Utilities coverage via utility funds, such as the Reaves Utility Income Fund (NYSE:UTG), a closed-end fund ("CEF"). Its profile from thwe UTG site states: "The Fund's objective is to provide a high level of after-tax total return consisting primarily of tax-advantaged dividend income and capital appreciation. It intends to invest at least 80% of its total assets in dividend-paying common and preferred stocks and debt instruments of companies within the utility industry. The remaining 20% of its assets may be invested in other securities including stocks, money market instruments and debt instruments, as well as certain derivative instruments in the utility industry or other industries."

Source: Seeking Alpha

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