News Column

The Reaves Utility Income Fund Announces Regular Monthly Dividend of $0.1375 Per Share

July 26, 2014

By a News Reporter-Staff News Editor at Investment Weekly News -- The Reaves Utility Income Fund (NYSE MKT: UTG) announced the next three monthly dividends at a rate of $0.1375 per common share per month, unchanged from the per share rate paid for the previous quarter. As of July 7, 2014, the Fund's market price was $28.67 per share and its net asset value was $31.19 per share.

Ron Sorenson, CEO and CIO of Reaves Asset Management, advisor to the Fund, recently commented on the fundamentals of the utility industry, which he believes remain quite positive. "Many state regulatory commissions, as well as the Federal Energy Regulatory Commission, have been constructive on allowed rates of return and rate design because they understand the need for utilities to attract sufficient capital to support continued investment in electric transmission, gas distribution infrastructure and compliance with environmental regulations."

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 utility companies. 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 dividend income and capital appreciation.

Keywords for this news article include: Banking and Finance, Finance and Investment, Investment and Finance, Reaves Utility Income Fund.

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Source: Investment Weekly News

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