Let’s follow the money. If there is going to be a heavy emphasis on infrastructure, then it stands to reason we could use some high-yield exposure for our model portfolio, suggests Bryan Perry, growth and income expert and editor of Cash Machine — and a participant in The Interactive MoneyShow Virtual Expo on February 16-18. Register for free here.
The Cohen & Steers Infrastructure Fund (UTF) is just the right fit for a number of good reasons. The primary investment objective of the Fund is total return, with an emphasis on income through investment in securities issued by infrastructure companies.
These are companies that typically provide the physical framework that society requires and are defined as utilities, pipelines, toll roads, airports, railroads, marine ports and telecommunications companies.
UTF has $3.1 billion in assets with 314 holdings that use roughly 27% in leverage to generate a 7.05% annual dividend yield that pays shareholders monthly. Total assets consist of 83.3% stocks, 6.7% corporate bonds, 5.6% preferred stocks and 3.3% convertible bonds.
Of the portfolio, 67.8% of the assets are rated investment grade. The following table features the top 20 holdings that truly define what a blue-chip fund UTF is and why it will make a very nice addition to the "Accelerated Income" model portfolio.
Top holdings include utilities with big commitments to green energy, cell towers, clean water, toll roads, railroads, natural gas pipelines and airport services. These are all assets that will be on the receiving end of any major infrastructure legislation.
Dividends are typically paid at the end of the month. The fund has a pattern of very respectable performance during the past seven years. Let’s put this standout 7% payer to work for us. Buy Cohen & Steers Infrastructure Fund under $27.
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