Utility Stocks for Retirement Investors: American Century Utilities Investors (BULIX)
Dividend Yield: 2.8%
For those retirement investors looking to be a bit more active with their utility investments, the American Century Utilities Fund (MUTF:BULIX) mutual fund could be an excellent choice.
BULIX is constructed using American Century’s process of systematic risk management. The idea is to find the optimal tradeoff between risk and total returns. So far that has worked wonders for the mutual fund, as its managed to return 8.36% annually since its inception in 1993 and features a four-star Morningstar rating.
In addition to its process, part of the reason for the fund’s outperformance comes down to its benchmark — the Russell 3000 Utilities Index. The Russell index also includes telecommunication firms and wireless/broadband providers in the “utility stocks” category. Both AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) have been huge winners over the last decade or so, as wireless adoption has taken hold. They just so happen to be BULIX’s top two holdings.
Either way, the fund has delivered on the returns front.
BULIX delivers on the income side of the equation as well. The fund currently yields a healthy 2.8%. Expenses clock in at 0.68%.
For retirement investors looking for an active approach, BULIX is the way to go.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.