Navigating Utility CEFs: Timing Is Critical for 10% Dividends

Investors can play the demand for power from AI by investing in utility stocks with a 10% dividend yield. Two closed-end funds, Gabelli Utility Trust (GUT) and Duff & Phelps Utility and Infrastructure Fund (DPG), are compared. GUT has a 10% yield, while DPG has a 6.3% yield. GUT trades at an 87% premium to net asset value (NAV), while DPG trades at an 11.5% discount. Timing is critical to maximize returns, and investors should consider the valuation of the funds when deciding which to invest in.