Cohen & Steers Infrastructure Fund

UTF

Market cap $3.1B

Cohen & Steers Infrastructure Fund (UTF) remains a buy, supported by AI-driven power demand and a 7.1% yield, despite a shrinking NAV discount. UTF's diversified portfolio, with 83% in equities and 17% in fixed income, provides income stability but may limit long-term capital appreciation. UTF underperforms more concentrated peers like KYN due to global diversification and a focus on income, but offers consistent, sustainable payouts.

The risk-return tradeoff is the financial principle according to which potentially higher returns require accepting higher risk. Risk is the potential for monetary loss or default stemming from market volatility, excessive debt, or unexpected economic downturns. When it comes to volatility, the main culprit is often leverage—the use of borrowed money to fund investments with the goal of multiplying returns.

Externally managed BDCs have to meet a high bar to qualify for a durable income portfolio. Their fees and sub-optimal incentives provide a structural headwind for long-term compounding. In my portfolio, I hold 2 externally managed BDCs that have passed the test.

Core holdings for durable income compounding are likely to be boring. This is because there is no hype, no "once in a lifetime opportunities." Instead, it is all about stable earnings, well-capitalized balance sheets and, simply, a patient compounding.

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NEW YORK, June 29, 2026 /PRNewswire/ -- This press release provides shareholders of Cohen & Steers Infrastructure Fund, Inc. (NYSE: UTF) (the "Fund") with information regarding the sources of the distribution to be paid on June 30, 2026 and cumulative distributions paid fiscal year-to-date. In March 2015, the Fund implemented a managed distribution policy in accordance with exemptive relief issued by the Securities and Exchange Commission.

Cohen & Steers Infrastructure Fund offers a compelling 7.27% yield, underpinned by robust, long-term infrastructure demand from the accelerating AI/data center buildout. UTF's portfolio of regulated utilities, midstream operators, and towers directly benefits from hyperscalers' surging CapEx, now exceeding $700 billion for 2026. UTF's monthly distribution is well-covered by net investment income and realized gains, with minimal return of capital, reflecting strong underlying cash flows.

The Cohen & Steers Infrastructure Fund offers a 7.3% monthly yield by investing in infrastructure equities, currently trading at an 8% discount to NAV and using 28% leverage. UTF's strategy combines stable, hard-asset exposure with a focus on total return, benefiting from secular tailwinds and potential rate advantages if borrowing costs fall. The Rithm Capital Corp. preferred shares yield 7% until 2026, then reset to 5-year Treasury plus 6.223%, offering potential upside to a 10% yield if not called.

UTF remains a Buy, benefiting from surging electricity demand driven by artificial intelligence and data center proliferation. UTF's portfolio has shifted toward major utilities like NextEra Energy and TC Energy, with distributions modestly increased to $0.165 per share monthly. AI-driven data center growth is causing unprecedented electricity demand, outpacing historical efficiency gains and creating a generational infrastructure investment opportunity.

Dividend investing provides a consistent income stream, beneficial for those seeking passive income, while growth stocks may require selling shares to realize gains. Seeking dividend income does not rule out focusing on the growth of the portfolio's nominal value, thanks to many funds that see their NAV grow over time. These securities offer a dual advantage: immediate returns through regular, periodic distributions, and capital appreciation through long-term NAV increase.