The Reaves Utility Income Fund Announces Regular Monthly Dividend.DENVER -- The Reaves Utility Income Fund (AMEX AMEX See: American Stock Exchange : UTG (UnixWare Technology Group) An organization formed in 1994 to establish UnixWare as an open standard. UnixWare was then owned by Novell who later sold it to SCO. UTG has since folded. ) today announced the next three monthly dividends at a rate of $0.11 per common share per month. The dividend represents an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. yield of 5.23% based on the current market price. As of June 28, 2007, the Fund's market price was $25.24 per share and its net asset value was $29.10. 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 Short-term capital gain A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income. , long-term capital gain Long-term capital gain A profit on the sale of a security or mutual fund share that has been held for more than one year. and return of capital. The final determination of the source of all distributions in 2007, 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Chief Investment Officer of W. H. Reaves & Co., and portfolio manager of the Fund, fully expects the Fund to continue earning the income necessary to pay a dividend characterized primarily by tax advantaged income. The recent increase in yield of the Ten Year U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Note has resulted in a steepening of the yield curve Steepening of the yield curve A change in the yield curve where the spread between the yield on a long-term and short-term Treasury has increased. Compare flattening of the yield curve and butterfly shift. while the cost of the short term auction market preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. issued by the Fund has not increased significantly. A price decline among some of the higher yielding utility stocks provides the opportunity to reposition the portfolio to earn higher dividend income. It appears that the probability of a reduction in short term interest by year end has diminished. For regulated utilities the higher costs of long term debt could, in some instances, lead to higher allowed return on equity. Long term interest rates remain at historically low levels. It is our opinion that the required investment in the nation's electric and gas infrastructure will persist in 2007 and beyond. The following dates apply to the upcoming dividends that have been declared: Ex-Distribution Date: July 11, 2007 Record Date: July 13, 2007 Payable Date: July 31, 2007 Ex-Distribution Date: August 13, 2007 Record Date: August 15, 2007 Payable Date: August 31, 2007 Ex-Distribution Date: September 12, 2007 Record Date: September 14, 2007 Payable Date: September 28, 2007 The Reaves Utility Income Fund The investment objective of the Fund is to provide a high level of income and total return consisting primarily of tax-advantaged dividend income and capital appreciation. There were approximately $907 million of total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and 22.7 million common shares outstanding as of June 28, 2007. An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contains this and other information, visit www.utilityincomefund.com or call 1-800-644-5571. Read the prospectus carefully before investing or sending money. The Reaves Utility Income Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion