Contrarians Only: A “Flash” Sale On Our Top AI Dividend

Core Viewpoint - The article highlights a unique investment opportunity in the Cohen & Steers Infrastructure Fund (UTF), which offers a 7.6% dividend yield and is currently trading at a significant discount to its net asset value (NAV), making it an attractive buy for investors looking for income and growth potential [4][5][10]. Group 1: Investment Opportunity - UTF has dropped from trading at a 6% premium to a 7.1% discount to its NAV, indicating a substantial price drop that is unusual for this fund [5][10]. - The fund has provided a total return of 41% since its inclusion in the Contrarian Income Report portfolio in November 2020, alongside a consistent monthly payout [6][7]. - The average premium for UTF over the past year was 1.8%, suggesting a potential price upside of around 10% if the discount reverts to historical levels [7]. Group 2: Market Dynamics - The demand for power, particularly driven by AI data centers in Texas, is expected to surge by 62% by 2030, creating a favorable environment for utility stocks like those held by UTF [9]. - The current market sentiment has led to a discount on UTF, which is attributed to investor behavior rather than poor management or stock selection [10][11]. Group 3: Rights Offering - UTF's management is conducting a "transferable rights offering," allowing existing shareholders to purchase new shares at a discount, which is a rare move for closed-end fund (CEF) managers [11][12]. - The rights offering is expected to create additional cash for the fund, potentially enhancing its investment capabilities and further supporting its value [14].