Investing·2025-10-24 09:26Core Insights - The article emphasizes that utility companies are evolving into significant players in the AI sector, offering attractive dividend yields of up to 10.4% as demand for AI infrastructure grows [2][22]. Utility Sector Dynamics - Texas is experiencing a surge in power demand, projected to increase by 62% by 2030, with Oncor indicating that current interconnection requests exceed double the peak demand [3][4]. - Portland General Electric (PGE) is leveraging AI technology to enhance grid flexibility, allowing for quicker interconnections for data centers, which positions it for growth despite being a traditional utility [5][6]. Investment Opportunities - Edison International (EIX) offers a nearly 6% yield and a low forward P/E ratio of 9, indicating it may be undervalued despite its known wildfire risks and litigation history [6][7]. - Brookfield Infrastructure Partners (BIP) provides a 4.9% yield and has a diverse asset base that includes significant infrastructure for electricity and data centers, benefiting from the AI megatrend [11][12]. Fund Performance - The MEGI NYLI CBRE Global Infrastructure Megatrends Term Fund offers a 10.1% distribution rate, with a substantial portion of its assets allocated to utility companies, although it also includes exposure to other sectors [17][19]. - The Gabelli Utility Trust (GUT) has a distribution rate of 10.4% and focuses heavily on utility stocks, making it a competitive option for investors seeking utility exposure [20][21].