Reaves W H & Co Inc released its third-quarter 2026 investor letter for “Reaves Dividend Income Strategy”. The letter can be downloaded here. The strategy fell 9.98% (net) in the quarter, underperforming the MSCI USA Infrastructure benchmark’s 5.73% decline. Year-to-date net returns were 2.48%, ahead of the benchmark. Portfolio companies’ cash distributions grew 5.0% over the past 12 months. In the third quarter, rising Treasury yields, inflation risks, and tighter monetary policy weighed on equity markets, though fundamentals of strategy-related companies remain sound. Energy and telecommunications contributed positively, while utilities lagged amid rising rates. Utility holdings retain a favorable outlook, supported by growing electricity demand and infrastructure investment. Expanding AI infrastructure investment also creates opportunities in utilities and essential infrastructure. The strategy remains focused on high-quality businesses with durable cash flows and potential to grow earnings and dividends over the long term. Also, check the strategy’s top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Reaves Dividend Income Strategy noted that Entergy Corporation (NYSE:ETR) detracted from performance. Entergy Corporation (NYSE:ETR) is a US based energy company engages in the production and retail distribution of electricity. On October 13, 2026, Entergy Corporation (NYSE:ETR) closed at $104.99, with a $50.16 billion market capitalization. Entergy Corporation (NYSE:ETR) posted a ~13.59% YTD gain, trading within a 52-week range of $90.87 to $118.45.
Reaves Dividend Income Strategy stated the following regarding Entergy Corporation (NYSE:ETR) in its Q3 2026 investor letter:
“Entergy Corporation (NYSE:ETR): Entergy underperformed as rising interest rates contributed to the stock giving back some of its year-to-date gains. The company continues to have strong long-term growth visibility, supported by a regulatory environment that remains constructive for data center development. We believe Entergy is well positioned to sustain mid-teens EPS growth into the mid-2030s. Additional expansion from existing large customers and new data center agreements should further increase visibility into that growth outlook.”
Energy Transfer’s (ET) Strong 2026 Run Gets a Fresh Vote from Stifel
Entergy Corporation (NYSE:ETR) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Entergy Corporation (NYSE:ETR) at the end of the second quarter, which was 50 in the previous quarter. While we acknowledge the potential of Entergy Corporation (NYSE:ETR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
