Reaves Utility Income Fund Raises Distribution 5% to $0.21 After Insider Buys 500 Shares
UTG•Rhame Joseph Burns III purchased 500 Reaves Utility Income Fund shares at $41.20, increasing his stake to 14,673.77 shares and signaling insider confidence. The fund boosted its monthly distribution by 5% to $0.21 per share—the 14th raise since 2004—while rising electricity demand from AI data centers underpins its utility holdings.
1. Insider Transaction
Rhame Joseph Burns III, Officer of the Investment Advisor, acquired 500 shares of Reaves Utility Income Fund at $41.20 per share on June 26, increasing his total holdings to 14,673.77 shares and reflecting strong insider confidence.
2. Distribution Hike
The fund raised its monthly distribution by 5% to $0.21 per share, marking the 14th increase since its launch in 2004 and reinforcing its focus on delivering consistent income to shareholders.
3. AI Data Center Tailwind
Growing electricity consumption from AI data centers provides a robust, long-term demand driver for the fund’s utility and infrastructure portfolio, helping to mitigate headwinds from higher interest rates.
4. Valuation and Leverage
UTG’s market price stood at $41.18 per share on June 17 versus a NAV of $41.86, with moderate leverage of 19.26% and an expense ratio of 2.09%, underlining its balanced income potential and risk profile.
