This 10% Payer Is the AI Boom's "Stealth Dividend"
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Investment Strategy in AI and Nuclear Power: The article suggests that instead of investing solely in popular AI stocks like NVIDIA, investors should consider high-yield closed-end funds (CEFs) focused on nuclear power and utilities, which are expected to benefit from the increasing demand for electricity driven by AI technologies.
Comparison of CEFs: It highlights two specific CEFs: Gabelli Utility Trust (GUT), which has a high premium but lower performance, and Voya Infrastructure Industrials and Materials Fund (IDE), which offers better value and returns while being more tactical in capitalizing on the AI boom.
Analyst Views on IDE
Wall Street analysts forecast IDE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IDE is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 12.750
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Current: 12.750
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About IDE
Voya Infrastructure, Industrials and Materials Fund (the Fund) is a diversified closed-end fund. The Fund is focused on achieving its investment objective by investing in companies that own and/or operate infrastructure facilities in the infrastructure sector, and in a range of companies, principally in the industrials and materials sectors. The Fund will seek to achieve its investment objective by investing approximately 80% of its managed assets in the equity securities of, or derivatives having economic characteristics similar to the equity securities. The Fund will also seek to secure gains and develop the stability of returns over a market cycle by writing call options on selected indices and/or exchange-traded funds. It invests in various sectors, such as integrated telecommunication services, electric utilities, specialty chemicals, industrial conglomerates, and electrical components and equipment, among others. Voya Investments, LLC serves as the investment adviser to the Fund.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
