I haven't been in it that long. I got in around the $24 range. Can you explain to me what the rights are and how they work? What do they do offer existing share holders the rights to be the first to buy new shares if they issue new shares? I have been very happy with this investment so far and wish I had bought a few thousand more when I bought. Oh well hindsight.
I have owned UtG for several years. Each time the stock dips I add on more shares. I own this fund for income and it has been consistently profitable for me over the years When they give rights, I exercise them to add additional shares. It would be very difficult to replace this income with another security.
UTG is leveraged, but I'd call 26.38% leverage "moderate". But, I too will continue to hold my shares as I've have for many years. I've only sold when it sold at a large premium to NAV.
UTG significantly leveraged and inflation may be raising its ugly head (with higher interest rates) to hurt utilities. I am continuing to hold my shares.
It's now selling over $30 a share... an up day, when the Dow Jones Utility index is down! On top of that, it's still selling at a discount, and has a great monthly payout. What's not to like with UTG?
Interest rates won't go up anytime soon. UTG said recently that they can withstand an interest rate increase. Still sells under NAV and I am buying the dips. 6%+ yield on UTG beats anything I can find that has a relatively good return.
Sentiment: Strong Buy
No problem for me. I just keep buying down here and rake in the dist and divy's.
Look at HGT if your looking at a Gas cold weather play with a good divvy. Its volatile so buy on any small drops. when I say that I'm talking 25 to 35 cent pull backs.
Unless you need the money why worry about small swings. It dropped after I bought it to and so I bought more and now I'm up quite a bit in a short period of time of just under 13% not counting the dividend. So considering its a utility fund and not a high flier I'm quite pleased with my return. So even if it doesn't move any higher from here I'm still looking at a 20% yearly return. I'll take that any day. Where else can I get that rate of return with relatively low risk.
The smart money is here in UTG. More smart money can be found in VNR.
I was a fan of UTG but now I am slightly underwater on it. The underlying problem is the leverage feature and what that will mean when interest rate rise. I should have jumped out when I was ahead. Another lesson learned.
I always call this stock Under The Gun, part of being a poker player I guess. Being under the gun in poker is generally one of the worse positions you can be in, but I don't feel that way about UTG.
With UTG, you are looking at a very high monthly dividend, this is the initial attraction to this fund. Look a little deeper and you notice a fairly steady chart moving $4.42 for the year, currently resting slightly lower than the middle of that range. Because of its currently price, I would recommend this as a strong buy. If it drops, based on history it won't likely drop more than $1 per share and the up side looks like $3 per share is easily possible.
This is not a day traders stock by any means. Personally I bought into this stock for long term place to park some cash. The risk is low, the div's are high and monthly. Anything under $25PS I declare a good buy, anything above I still consider this a buy. For along term, steady strategy, this stock is very attractive. I think the strong buy rating is more for growth stocks, perhaps a more appropriate rating is HOLD for this type of stock, but I would not be shy on this one.
Under The Gun with my money.
I think we still have about a $2.00 a share upside from here in the 1st Q of 2014. I loaded up about 2 weeks ago. Still a great buy. I"ll buy again the day after x div date. If it drops a lot a day before x div I buy more.