The Reaves Utility Income Fund (NYSE Amex: UTG) today announced the next three monthly dividends at a rate of $0.115 per common share per month, unchanged from the per share rate paid for the previous quarter. The dividend represents an annualized yield of 6.4% based on the current market price. As of October 7, 2010, the Fund’s market price was $21.71 per share and its net asset value was $21.35 per share.
A portion of the 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 all distributions in 2010, including the percentage of qualified dividend income, will be made after 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.
Ronald Sorenson, CEO, Chief Investment Officer of W. H. Reaves and portfolio manager recently noted that the recovery in equity markets over the past several months permitted the Fund to realize capital gains sufficient to recover nearly all prior year realized capital losses carried into the 2010 fiscal year, which ends October 31. Mr. Sorenson reiterated the Fund’s long-term goal of growing the dividend over time commensurate with the rising earnings power of the Fund’s underlying investments.
The following dates apply to the upcoming dividends that have been declared:
Ex-Distribution Date: October 18, 2010Record Date: October 20, 2010Payable Date: October 29, 2010
Ex-Distribution Date: November 17, 2010Record Date: November 19, 2010Payable Date: November 30, 2010
Ex-Distribution Date: December 15, 2010Record Date: December 17, 2010Payable Date: December 31, 2010