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Allspring Utilities & High Income Fund offers 8.6% yield with stable dividends despite interest rate risks.

Analyst Insights
05 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

The Allspring Utilities & High Income Fund (ERH) maintains a buy rating due to its attractive 8.6% yield and a 7.75% discount to net asset value (NAV). Its earnings consistently cover distributions, supported by AI-driven growth in utility holdings. While leverage and interest rate risks are concerns, the fund's focus on income and NAV management help sustain its dividends. ERH is ideal for income-focused investors, although its total returns lag behind traditional utility ETFs over the long term.

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