We've got a sweet deal on one of my favorite AI dividends (a 7.9% monthly dividend). And it's not just because of last week's stock market drop—though that does help.
The Cohen & Steers Infrastructure Fund now trades at an attractive 6.5% discount to NAV, arguably the widest in recent times. UTF's diversified infrastructure exposure, leverage, and 7.6% forward yield position it strongly to benefit from secular growth trends in utilities, energy, and AI data centers. Despite recent volatility and dilution concerns, UTF's uptrend remains intact, with dip-buyers already returning and the risk/reward profile turning increasingly bullish.
We contrarians live for the “one-off” shots at extra income (or gains!) our favorite AI dividend plays throw our way.
In our previous work, we suggested investors dump UTF and buy UTG. The previous idea generated 18% returns in less than 3 months. We bring you our next idea in this sphere.
Infrastructure enjoys numerous powerful growth tailwinds. UTF is an infrastructure income machine built for AI, energy, and growth. We take a closer look at the fund and share our take on whether it is a buy right now or not.
UTG is more U.S.-focused and utility-heavy, ideal for data center-driven electricity demand growth. UTF has higher leverage, more international exposure, and stronger historical total returns over 10 years. Both funds offer stable monthly income, but UTG has a lower NAV premium than UTF.
UTF investors have easily beaten the market hands down over the past year. At the same time, still distributing 7% at the current levels. The fund's diversified exposure to utilities, industrials, and energy, plus AI/data center and reshoring themes, underpins its long-term infra growth thesis. Leverage has amplified UTF's outperformance versus peers, but also introduces downside risk. Yet, lower interest rates should further boost returns.
UTF offers a compelling blend of income, stability, and growth, with a 7% yield and strong positioning in essential infrastructure sectors. The fund benefits from macroeconomic tailwinds, including rising CapEx from tech giants and global infrastructure initiatives, supporting long-term demand. UTF's 21-year track record of uninterrupted distributions and outperformance versus the S&P 500 make it attractive for income-focused investors.
AI continues to fuel massive energy demand, and utilities are critical beneficiaries. Utilities provide essential, non-discretionary services, making them suitable investments for income investors. Markets will always face uncertainties. Stabilize your income from industries with strong pricing power and inelastic demand.
UTF's investment proposition is straightforward: own physical assets that pay you robust cash flows. The fund's consistent dividend and strong total returns make it a great option for those seeking both growth and income. With a diversified portfolio and a prudent use of leverage, we think UTF is positioned for further upside in this market.
UTF offers a compelling mix of infrastructure and utility investments, providing both income and growth potential for long-term investors. Recent valuation updates suggest UTF remains attractively priced relative to historical averages, enhancing its appeal for new capital deployment. The fund's annual report highlights a diversified portfolio and prudent risk management, supporting confidence in its ongoing performance.
The Cohen & Steers Infrastructure Fund is upgraded to a hold due to a more favorable regulatory environment and expected lower interest rates. UTF has outperformed the S&P 500 over the last year, offering 16.32% total returns compared to the S&P 500's 8.18%. The utility sector is set to benefit from lower costs, eased regulations, and falling commodity prices, enhancing UTF's appeal to income investors.