BlackRock Utilities, Infrastructure & Power Opportunities Trust (BUI)
BUI & DNP: Utility Funds Get Too Expensive
BUI has outperformed DNP over the last 6 months, which is unusual given its typical structure and strategy. BUI's strong performance is notable because it sells covered calls and does not use leverage, unlike DNP. We go over why it happened and where we would go for 7%-8% yields today.
BUI: 6.7% Yield On Defensive Utilities (Rating Downgrade)
Utilities are outperforming in 2025, making BlackRock Utilities, Infrastructure & Power Opportunities Trust a timely way to access defensive, income-generating assets through a diversified closed-end fund. BUI offers a 6.7% yield with monthly distributions, recently raised by 12%, and strong long-term returns. Currently, BUI trades at a slight premium to NAV, making it a bit less attractive than historical discounts, but that may change.
BUI: My General Sense Of Caution Extends To Leveraged Utilities (Rating Downgrade)
Evaluate BlackRock Utilities, Infrastructure & Power Opportunities Trust as an investment at its current market price. I am downgrading my outlook because BUI's discount to NAV is now gone. The fund's income has recently received a boost, but management is relying excessively on return of capital to make that happen.
BUI: Utilities Fund Hikes By 12% And Beats DNP In Every Important Metric
Our recent coverage on BUI had mainly buy ratings with one hold rating. DNP, on the other hand, got mainly sells and strong sells. We analyze the setup today for both funds in light of a 12% distribution hike by one.
BUI: Good Diversification Between Traditional And Renewable Energy At A Discount
The BlackRock Utilities, Infrastructure & Power Opportunities Trust offers a 6.92% yield, higher than utility indices, appealing to income-seeking investors despite underperforming peers in yield. The fund's diversified portfolio includes traditional utilities, renewable energy, and infrastructure companies, balancing performance amid fluctuating interest rates and regulatory changes. Despite recent underperformance, the fund's consistent distribution history and recent increase suggest sustainability, making it attractive for income-focused investors.
BUI: Attractive Infrastructure CEF For More Conservative Investors
BlackRock Utilities, Infrastructure & Power Opportunities Trust offers diversified global infrastructure exposure without incorporating borrowings, instead using an options writing strategy. The BUI ETF is set to benefit from rate cuts as the underlying portfolio becomes more appealing in a lower rate environment. The BUI fund has delivered a consistent distribution to investors, making it attractive for those who are income-oriented—and I believe there could be room for an increase as well.
BUI: Quality Utility And Infrastructure Fund With 6.5% Income
BlackRock Utilities, Infrastructure & Power Opportunities Trust is a Utility and Infrastructure sector-specific closed-end fund that invests globally in a fairly diversified portfolio of common stocks of utilities and infrastructure companies. The BUI CEF currently provides a reasonable yield of 6.50% without using any leverage; however, it offers almost no discount, which is currently at -1.15%. BUI has a decent long-term record of over 12 years for a utility-focused fund. However, it has performed poorly recently, which is in line with the performance of the utility sector. Going forward, there are certain tailwinds that should help utilities in general.
BUI: Utilities Outperform The AI Mania
BlackRock Utilities, Infrastructure & Power Opportunities Trust is a closed end fund that invests in Utility, Infrastructure, and Power companies globally. BUI has outperformed DNP Select Income Fund in terms of total return on NAV over the last decade without using leverage. We review our buy rating on BUI in light of utilities actually outperforming the NASDAQ 100 year to date.
