Utilities as Investment Opportunities: Utilities are evolving into significant players in the AI sector, offering high dividends (up to 10.4%) while traditional investors focus on momentum stocks.
Strained Power Grids: Texas faces a projected 62% increase in power demand by 2030, with utilities like Oncor and Portland General Electric adapting to meet the needs of growing data centers and populations.
Edison International's Risks and Rewards: Despite facing wildfire litigation and risks, Edison International offers a nearly 6% yield and has potential for growth due to its renewable energy focus and large customer base.
Investment Strategies in Infrastructure: Brookfield Infrastructure Partners and various closed-end funds provide exposure to utility sectors with attractive yields, though investors should be cautious of high premiums and leverage in these investments.
The Gabelli Utility Trust (the Fund) is a diversified closed-end management investment company. The Fund's primary investment objective is long term growth of capital and income. The Fund invests at least 80% of its net assets (plus borrowings made for investment purposes), under normal market conditions, in common stocks and other securities of foreign and domestic companies involved in providing products, services, or equipment for the generation or distribution of electricity, gas and water, and telecommunications services or infrastructure operations. Under normal circumstances, the Fund invests in securities of issuers located in countries other than the United States and may invest in such foreign securities without limitation. The Fund's portfolio includes equipment and supplies, transportation, diversified industrial, oil, electronics, environmental services, financial services, automotive and specialty chemicals. The Fund's investment adviser is Gabelli Funds, LLC.
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.
