DENVER -- (Business Wire)
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.
The dividend represents an annualized yield of 6.55% based on the
current market price. As of December 18, 2012, the Fund’s market price
was $24.06 per share and its net asset value was $24.75 per share.
Ron Sorenson, Chief Investment Officer and CEO at Reaves Asset
Management, recently commented on the impact of the Fund’s rights
offering, completed this past summer, on the dividend yield outlook. “We
view the rights transaction as long-term positive outcome for the Fund
and its investors. The offering proceeds were invested principally in
proven, current holdings of utility equities, increasing their portfolio
weighting from just over 41% to 53%. The new investments enhanced the
Fund’s current and potential future dividend yield.”
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
The following dates apply to the upcoming dividends that have been
Ex-Distribution Date: December 27, 2012
Record Date: December 31, 2012
Payable Date: January 16, 2013
Ex-Distribution Date: February 13, 2013
Record Date: February 15, 2013
Payable Date: February 28, 2013
Ex-Distribution Date: March 14, 2013
Record Date: March 18, 2013
Payable Date: March 28, 2013
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 $1.0 billion
of total assets under management and 29.0 million common shares
outstanding as of December 18, 2012.
An investor should consider investment objectives, risks, charges and
expenses carefully before investing. To obtain a prospectus, annual
report or semi-annual report which contains this and other information
or call 1-800-644-5571. Read them carefully before investing.
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.
Reaves Utility Income Fund
Edmund Burke, 303-623-2577
Source: Reaves Utility Income Fund
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