Cohen & Steers Infrastructure Fund, Inc. (ticker: UTF) is a closed-end fund that invests primarily in listed infrastructure companies — utilities, pipelines, toll roads, telecoms and similar businesses — with an emphasis on income and total return. The fund targets at least 80% exposure to infrastructure securities and is permitted to hold preferreds and fixed-income as well. (Cohen & Steers+1)
The case for UTF in a downturn
- High and steady monthly distribution. UTF pays a monthly cash distribution (recently about $0.155 per share) that translates to a forward annualized dividend around the high-single to mid-single digits (roughly a 7–8% yield at current market prices). That regular payout can make UTF attractive to income-seeking investors during equity market weakness. (Cohen & Steers Resources+1)
- Defensive underlying exposure. Infrastructure companies often provide essential services (power, water, roads, telecom) with relatively stable cash flows and regulatory protections that can soften downside in economic contractions compared with cyclical sectors. UTF’s strategy explicitly focuses on these companies and includes income-oriented holdings (common equity plus a portion in preferreds/fixed income). (SEC+1)
- Closed-end structure can add opportunity. As a closed-end fund, UTF can trade at a premium or discount to net asset value (NAV) and use leverage or share repurchases to enhance returns. In downturns, discounts can widen and create potential buying opportunities for investors seeking yield and income—though discounts can also persist. Recent fund documents show management tools (repurchase programs, rights offerings) are in use when needed. (Cohen & Steers+1)
- Relative price stability historically. While all market securities fall in tough selloffs, UTF’s share price history shows less extreme volatility than many small-cap or tech names because of its income focus and infrastructure holdings. (See sources below for historical price and distribution history.) (Yahoo Finance+1)
- Total-return potential from dividends + capital. In a downturn the regular dividend cushions total returns. If the portfolio’s underlying cash flows remain intact, the dividend can provide an attractive yield while capital recoveries occur — particularly for buy-and-hold income investors.
Risks you must weigh
- Discount/premium risk: CEFs can trade at large, persistent discounts to NAV; the market price might not reflect NAV recovery quickly. (CEF Connect)
- Leverage and interest-rate sensitivity: Some closed-end funds use leverage that can magnify losses when markets fall and can increase sensitivity to rising rates. UTF’s prospectus and factsheet discuss leverage and fixed-income exposure. (Cohen & Steers Resources+1)
- Concentration risk: Heavy exposure to infrastructure and related subsectors means sector-specific shocks (regulatory, energy shocks, etc.) can hit performance. (SEC)
Current snapshot (load-bearing facts)
- Market price (recent close): roughly $24.20. (Yahoo Finance)
- Forward annualized dividend / distribution: roughly $1.86 per share (monthly payments ≈ $0.155) — forward yield around 7–8% at current prices. (StockAnalysis+1)
- Investment objective: total return with emphasis on income; invests at least 80% in infrastructure securities. (SEC+1)
12-month stock-price projection (company/analyst estimates-style scenarios)
Analysts don’t always publish a single consensus price target for closed-end funds like UTF; where a consensus target isn’t available, a scenario approach is often more informative. Below I created three plausible projected price scenarios for the next 12 months — Bear (–15% y), Baseline (+4% y) and Bull (+25% y) — starting from the recent market close (~$24.20). These are illustrative projections (not predictions or investment advice), intended to show how price paths and total return dynamics might look under different macro/backdrop outcomes.
Key assumptions used for the chart: start price $24.20, monthly compounding equivalent to the annual scenario rates listed above. These scenarios do not include dividends — they show market-price outcomes only (adding dividends would materially improve total returns, especially at a ~7–8% yield).
Quick takeaways
- UTF’s monthly dividend and exposure to essential infrastructure make it a reasonable consideration for income-focused investors during market downturns; the dividend can provide cashflow support while equity markets recover. (Cohen & Steers Resources+1)
- However, because UTF is a closed-end fund, price movements can diverge from underlying NAV and be influenced by fund-specific factors (discounts, leverage, corporate actions). That tradeoff (high yield vs. structural CEF risks) is central to whether UTF is appropriate for any individual portfolio. (Cohen & Steers+1)
Disclosure
I currently hold a position in the Cohen & Steers Infrastructure Fund (UTF). This information is provided for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a qualified financial professional before making any investment decisions.
References
Cohen & Steers. (n.d.). Cohen & Steers Infrastructure Fund (UTF). Retrieved from https://www.cohenandsteers.com/
Cohen & Steers. (n.d.). UTF: Cohen & Steers Infrastructure Fund—Fact sheet. Cohen & Steers. (Original fund literature.)
Dividend.com. (n.d.). UTF dividend history: Cohen & Steers Infrastructure Fund. Retrieved from https://www.dividend.com/
DividendMax. (n.d.). Cohen & Steers Infrastructure Fund dividend information. Retrieved from https://www.dividendmax.com/
SEC. (n.d.). Cohen & Steers Infrastructure Fund, Inc. (UTF) — Prospectus & filings. U.S. Securities and Exchange Commission. Retrieved from https://www.sec.gov/
StockAnalysis.com. (n.d.). UTF: Cohen & Steers Infrastructure Fund stock dividend & history. Retrieved from https://stockanalysis.com/
Yahoo Finance. (n.d.). UTF — Cohen & Steers Infrastructure Fund price & chart data. Retrieved from https://finance.yahoo.com/
Health to Wealth Ventures 