The Reaves Utility Income Fund (NYSE MKT: UTG) announced today the next three monthly dividends, at a rate of $0.13125 per common share per month, unchanged from the per share rate paid for the previous quarter. As of June 25, 2013, the Fund’s market price was $24.35 per share and its net asset value was $25.76 per share.
Ron Sorenson, CEO and CIO of Reaves Asset Management, noted that the recent decline in utility share prices over the past several weeks has not impacted the Fund’s portfolio companies’ ability to pay their dividends or their ability to periodically increase their dividends. The Fund’s dividend, paid monthly, consists largely of earned income. “Very little has changed fundamentally. The interest rate on the Fund’s Committed Facility Agreement rate is based on the one-month LIBOR (London-Interbank Offered Rate) which is currently less than 0.20% compared to 0.24% one year ago.”
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.The following dates apply to the upcoming dividends that have been declared:
|Ex-Distribution Date: July 16, 2013|
|Record Date: July 18, 2013|
|Payable Date: July 31, 2013|
|Ex-Distribution Date: August 15, 2013|
|Record Date: August 19, 2013|
|Payable Date: August 30, 2013|
|Ex-Distribution Date: September 18, 2013|
|Record Date: September 20, 2013|
|Payable Date: September 30, 2013|