Daily Stock Pick for July 28, 2023

The weekend starts tomorrow.

During the weekend, most of us just want to sit back, relax, and enjoy ourselves.

We don’t want to have our minds thinking about making money (important though that is).

That’s why, for the last day of the trading week, I’m going to be sharing a stable 8%-yielding dividend play…

The kind that could truly allow you to just sit back and collect passive income…

The kind that’s perfect for investors looking to make their weekdays more like the weekends.

Reaves Utility Income Fund (UTG)

As you might have guessed from the name, UTG is not a stock per se – but a fund. Specifically, it’s a closed-end fund (referred to by the acronym CEFs), meaning that it only issues shares once. No new shares are issued, meaning any shares you buy after that issuance must come from existing shareholders.

UTG, as the name suggests, mainly invests in utility companies – although it does have significant exposure to communication services and industrial sectors (though these are still infrastructure related).

UTG has been extremely consistent in paying out its dividend – even through the dark days of the pandemic. This can be attributed to UTG’s level of portfolio diversification – investing in nearly 50 companies – combined with its utility focus, an industry which benefits from inelastic demand combined with regulatory protections.

Over the past 5 years, the stock has seen a modest 10% depreciation – with minimal volatility. As I said, this is purely a consistent “buy, forget, and collect” dividend/income play – perfect for those who love weekends.

To your wealth,
Felix @ Ace of Investing