Saturday, February 8, 2014

BlackRock Utility and Infrastructure (BUI) news: BlackRock Utility And Infrastructure Trust - Utilities At A 13% Discount And An 8% Distribution - Seeking Alpha

BlackRock Utility and Infrastructure (BUI) news: BlackRock Utility And Infrastructure Trust - Utilities At A 13% Discount And An 8% Distribution - Seeking Alpha



This is a great article about the BlackRock Utility and Infrastructure closed-end fund (BUI).  They pay a quarterly dividend of 8%, and the expense ratio is around 1%.  You may get enough capital gain to cancel out the expense ratio, but your net gain should be at least 7% which would be made in a safe way.  That is more than you would get with government bonds.  Also, the stock market will probably have a volatile year.  You probably won't make more than 10% this year in the S&P 500, and it will most likely involve a lot of worry and anxiety. BUI is the way to go for peace of mind.

Another point about BUI is that you get exposure to MLPs without having to fill out K-1 forms. BUI also writes options as a way of leveraging the fund's return.  BlackRock also has the top ten holdings in solid utilities.


No comments:

Post a Comment