DENVER--(BUSINESS WIRE)--The Reaves Utility Income Fund (NYSE MKT: UTG) announced today the next three monthly dividends at a rate of $0.16 per common share per month, unchanged from the per share rate paid for the previous quarter. As of October 11, 2017, the Fund’s market price was $31.02 per share and its net asset value was $33.54 per share.
Ronald J. Sorenson, Chief Investment Officer at Reaves Asset Management and Portfolio Manager of the Fund, noted that “outlook for the Fund’s underlying portfolio continues to be fundamentally positive. As we indicated in the rationale underpinning the recently completed rights offering, we expect continued support in select states for renewables investment and multi-year investment in generation and transmission infrastructure. We anticipate a more accommodative Federal Energy Regulatory Commission will adopt a less contentious approval process, resulting in greater transparency around allowed rates of return. Continued growth of cash flow at cable and tower companies, driven by increasing demand for streaming video, should support dividend increases and stock price appreciation.” Mr. Sorenson also expressed a deep sense of gratitude to UTG shareholders for their enthusiastic support of the rights offering. “We sincerely appreciate the overwhelmingly positive response shareholders accorded to the offering and look forward to investing the proceeds in companies with superior prospects for earnings and dividend growth.”
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: October 23, 2017
Record Date: October 24, 2017
Payable
Date: October 31, 2017
Ex-Distribution Date: November 16, 2017
Record Date: November 17,
2017
Payable Date: November 30, 2017
Ex-Distribution Date: December 14, 2017
Record Date: December 15,
2017
Payable Date: December 29, 2017
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 $1.95 billion of total assets under management and 48.7 million common shares outstanding as of October 11, 2017.
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.
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.
ALPS Portfolio Solutions Distributor, Inc., FINRA Member Firm.
