Reaves Utility Income Fund

UTG

Market cap $3.4B

I am thankful for many things this year. I am particularly thankful for my favorite Black Friday special from Mr. Market. I detail why I like this high-yielding bargain.

Statement Pursuant to Section 19(a) of the Investment Company Act of 1940 DENVER, CO / ACCESS Newswire / November 28, 2025 / On November 28, 2025, the Reaves Utility Income Fund (NYSE American:UTG) (the "Fund"), a closed-end sector fund, paid a monthly distribution on its common stock of $0.20 per share to shareholders of record at the close of business on November 17, 2025. The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder.

UTG is downgraded from Buy to Hold after a strong rally driven by AI and data center themes. UTG's top holdings, especially merchant generators, have surged on AI-related electricity demand, but recent corrections highlight increased volatility and risk. While the AI narrative is real, not all utilities will benefit equally, and UTG's defensive profile is evolving toward a semi-growth play.

Reaves Utility Income Trust (UTG) stands out as the preferred choice over Cohen & Steers Infrastructure Fund (UTF) for utility and infrastructure exposure. UTG offers a stronger total return, impeccable 21-year dividend history, and lower currency/geopolitical risk compared to UTF's global infrastructure focus. UTG's US utility portfolio is less volatile and more resilient in economic downturns, while UTF is more sensitive to global economic cycles.

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These two high-yield funds combine dependable income with exposure to some of the strongest long-term secular trends. They offer high yields that are backed by portfolios filled with high-quality companies. They also trade at very attractive valuations and provide strong dividend growth.

The Cohen & Steers Infrastructure Fund offers a better return/risk profile than Reaves Utility Income Trust due to higher leverage and valuation discount. UTF benefits more from declining interest rates, as its higher leverage and interest expenses will see greater cost reductions compared to UTG. UTF currently trades at a notable yield premium and valuation discount versus UTG, enhancing its appeal for income-focused investors.