The utilities sector is not favored by many investors, who seek capital appreciation. Indeed, utilities is a defensive sector. The good thing about this sector though is that it generally outperforms the market during a downturn. More importantly, utilities pay regular dividends, which means that this sector is attractive for income investors.
While investors can consider investing directly into utilities stock for regular income, passive investors can also consider in mutual fund corporations like Utility Corp. (TSX: UTC.C). Utility Corp.’s investment portfolio consists of publicly listed income trusts and companies of selected Canadian utilities and telecommunication issuers. The fund’s aim is to provide investors with a stable monthly dividend stream and capital appreciation potential through investments in common shares of selected publicly listed Canadian utility companies.
Utility Corp.’s top holdings include Northland Power Inc. (TSX: NPI) and Manitoba Telecom Services Inc. (TSX: MBT). This morning, the fund declared a monthly dividend of $0.0940 per Class C Share. The dividend will be payable on March 31, 2016 to holders of record at the close of business on March 28, 2016. Utility Corp. currently offers a dividend yield of 4.93%. Year-to-date, the fund is up 3.11%.
