NXG: Collecting Income From Modern Infrastructure
NXG offers a high 13.8% yield and focuses on modern infrastructure, but current entry is not ideal due to a rights offering and premium valuation. The fund's strategy emphasizes income over growth, using aggressive leverage that poses risks in today's high interest rate environment. Dividend coverage is inconsistent, with most payouts funded by return of capital; a lower payout could enhance stability and sustainability.
NXG: Still Not Sure Where The Income Is
I maintain my Hold rating on NXG, as risks I highlighted previously persist, despite no immediate negative developments since my last review. NXG NextGen Infrastructure Income Fund continues to pay dividends in excess of distributable cash flow, relying on return of capital rather than organic portfolio income. The upcoming rights offering does not present a compelling opportunity, especially as shares now trade at a premium to NAV.
NXG: Nearly 14% Yield, Stable Performance, Is It A Buy?
NXG NextGen Infrastructure Income Fund offers high monthly income and diversified infrastructure exposure, benefiting from AI-driven energy demand. NXG currently pays a generous distribution yield of just below 14% and trades at a small premium. The fund has performed very well on a five-year basis; however, the long-term performance over 10 years has been subpar, partly due to the oil price crash in 2014.
NXG: 16% Yield On Infrastructure, Tax Deferral Benefit
NextGen Infrastructure Income Fund has delivered a 6% total return over the past six months-plus, outperforming the S&P 500's -4.40%. Management has done a good job of increasing NXG's NAV/share - it has risen from $23.83 at inception, to $36.92, as of 4/8/25. The fund's current 3.28% premium to NAV is significantly higher than its historical discounts, prompting a Hold rating due to valuation concerns.
NXG: For The Next Generation Of Income Investors
Significant investment in power grids is needed by 2030 to meet growing electrification and renewable energy demands, benefiting companies like Vistra, Constellation Energy, and Energy Transfer. NXG NextGen Infrastructure Income Fund offers high yield (13.6%) and capital appreciation potential, focusing on sustainable infrastructure and uncorrelated growth opportunities. NXG's top holdings include ET, VST, and CEG, contributing to its strong performance and high total returns since September 2023.
NXG: A Couple Of Holes In This Strategy
NextGen Infrastructure Income Fund yields 14%, but its reliance on common stocks makes it different from many other CEFs. The fund's diverse portfolio includes traditional and tech-focused infrastructure stocks, aiming for income through dividends and long-term growth. Historical performance shows inconsistent cash flows, with recent dividends supported by leverage and capital gains rather than organic income.
NXG: 15% Yield, 4% Discount On New And Old Infrastructure
The NextGen Infrastructure Income Fund (NXG) offers a 15.77% yield, investing in both traditional and next-gen infrastructure, including renewables and data storage. NXG's performance has been mixed, with recent outperformance but historical underperformance on an NAV basis over longer periods. Management doubled the dividend from $.27 to $.54 in September 2023.
NXG: A Good Way To Add Renewable Energy To A Portfolio And Profit From Electrification
The NXG NextGen Infrastructure Income Fund offers a 16.80% yield, providing investors with exposure to renewable energy and the energy transition without sacrificing income. The fund's recent performance has been impressive, outperforming the S&P 500 Index and delivering a total return of 43.04% over ten months. The fund's portfolio consists of a combination of renewable energy and natural gas midstream, which gives it exposure to companies that are likely to benefit from the "green" transition.
NXG: Distribution Boost Does Its Job
NXG NextGen Infrastructure Income Fund's discount has narrowed materially thanks to the much higher distribution. Though there was some considerable volatility shortly after our prior update, the fund's performance eventually saw some meaningful upside. With the fund's discount being much more narrow these days, the overall appeal of adding to this fund isn't quite what it was previously.
NXG: Strong Bounce On Narrowing Discount But Watch Portfolio Risks
NXG NextGen Infrastructure Income Fund has seen a strong performance in the short-term, benefiting from a closing of the fund's discount to net asset value. However, the fund has significantly underperformed other infrastructure funds over the long-run. The recent performance of NXG is primarily driven by a reallocation of the portfolio into riskier sectors and a closing of the discount to NAV, raising concerns about future performance.
