The Reaves Utility Income Fund Increases Its Monthly Distribution 5.88% to $0.18 Per Share
June 17 2019 - 9:00AM
Business Wire
The Reaves Utility Income Fund (NYSE MKT: UTG) is pleased to
announce a 5.88% increase in its annual distribution to $2.16, to
be paid monthly, beginning in July, at the rate of $0.18 per common
share. This is the eleventh increase since the Fund’s inception in
February 2004. The increased dividend rate represents an annualized
distribution rate of 6.16% based on the current market price. As of
June 12, 2019, the Fund’s market price was $35.07 per share and its
net asset value was $34.76 per share.
Ronald J. Sorenson, the Fund's portfolio manager and Chief
Investment Officer of Reaves Asset Management, the Fund's
investment adviser, commented, “The decision to increase the annual
distribution is based upon the underlying operating performance of
the Fund’s portfolio investments with the expectation that future
distributions will continue to consist of qualified dividend income
and realized capital gains. Avoiding returns of capital allows for
the underlying portfolio to compound in value and underpin the
Fund’s Net Asset Value. Delivering an above average and rising
income stream in a climate of declining interest rates is
consistent with the Fund’s income objective established at its
formation.”
The Fund has formally implemented the 19b-1 exemption received
from the Securities and Exchange Commission in 2009. A portion of
each distribution may be treated as paid from sources other than
net income, including but not limited to short-term capital gain,
long-term capital gain and return of capital. The final
determination of the source of these distributions, including the
percentage of qualified dividend income, will be made after the
Fund’s year end.
Not less than eighty percent of the Fund’s assets will continue
to be invested in the securities of domestic and foreign companies
involved to a significant extent in providing products, services or
equipment for (i) the generation or distribution of
electricity, gas or water, (ii) telecommunications activities
or (iii) infrastructure operations, such as airports, toll
roads and municipal services (“Utilities” or the “Utility
Industry”). As a policy, the Fund continues to strive to provide a
high level of after-tax income and total return consisting
primarily of tax-advantaged distributions and capital
appreciation.
The following dates apply to the upcoming dividends that have
been declared:
Ex-Distribution Date: July 22, 2019Record Date: July 23,
2019Payable Date: July 31, 2019
Ex-Distribution Date: August 20, 2019Record Date: August 21,
2019Payable Date: August 30, 2019
Ex-Distribution Date: September 19, 2019Record Date: September
20, 2019Payable Date: September 30, 2019
The Reaves Utility Income Fund
The investment objective of the Fund is to provide a high level
of income and total return consisting primarily of tax-advantaged
distributions and capital appreciation. There were approximately
$2.1 billion of total assets under management and 48.7 million
common shares outstanding as of June 12, 2019.
An investor should consider investment objectives, risks,
charges and expenses carefully before investing. To obtain an
annual report or semi-annual report which contains this and other
information visit www.utilityincomefund.com or call
1-800-644-5571. Read them carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., FINRA Member
Firm.
The Reaves Utility Income Fund is a closed-end fund and
closed-end funds do not continuously issue shares for sale as
open-end mutual funds do. Since the initial public offering, the
Fund now trades in the secondary market. Investors wishing to buy
or sell shares need to place orders through an intermediary or
broker. The share price of a closed-end fund is based on the
market’s value.
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version on businesswire.com: https://www.businesswire.com/news/home/20190617005055/en/
Reaves Utility Income FundJeremy Held, ALPS+1 (303) 623
2577jeremy.held@alpsinc.com
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