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Strategies & Market Trends : Young and Older Folk Portfolio

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To: mykesc2020 who wrote (21550)	10/22/2025 1:38:19 PM
From: QTI on SI	10 Recommendations Read Replies (1) of 21937

Re. UTG - Mike, I'm tempted to add here too, but the only thing giving me some reservation is the yield being historically at the low end. Maybe wait for 7%+ yield? UTG's 10-year avg yield is around 7.1%. Small adds via DCA maybe okay, I think. I have a pretty large UTG position myself, so trying to be a bit conservative on where I add. Anyway, I ran the analysis of UTG's current yield vs. historic data: UTG Yield Perspective Current Yield: ~6.4% 10-Year Range: ~5.2% – 10.3% Average Yield (2015–2024): ˜ 7.1% Typical “Buy Zone”: Historically, UTG has offered attractive entry points when the yield exceeds 7.5% (often during market pullbacks or utility underperformance). Interpretation At 6.4%, UTG’s yield is below its 10-year average and closer to the lower end of its typical range. That suggests: It’s not particularly cheap right now based on yield history alone. Yields near or below 6.5% have historically coincided with price strength or relative premium periods. In contrast, yields above 7.5–8% have tended to mark better buying windows — often after rate spikes or energy sector dips. Bottom Line From a yield-based valuation standpoint: UTG is not in its historical “buy zone” — it’s currently at the lower yield range, suggesting limited margin of safety for new entries. However: If the discount widens or yield rises above 7%, it would align more with past attractive entry levels. Long-term investors reinvesting distributions may still find value if they’re focused on steady NAV recovery and dividend consistency rather than timing yield spikes.

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