Reaves W H & Co Inc’s Reaves Dividend Income Strategy gained 0.25% net in the second quarter of 2026, outperforming the MSCI USA Infrastructure benchmark, and returned 13.85% year to date, also ahead of the index. Portfolio-company cash distributions increased by a weighted average 5.3% over 12 months. The letter said resilient corporate earnings improved sentiment despite Middle East tensions and policy uncertainty, supporting demand for companies with visible earnings, durable cash flows and dividend growth. It highlighted regulated utility and infrastructure holdings including Pinnacle West Capital Corporation, Iron Mountain, Spire, Chevron and DT Midstream. Pinnacle West closed at $91.32 on September 28, 2026, with a market capitalization of $11.07 billion, while 42 hedge fund portfolios held the stock at the end of the second quarter, down from 44 in the prior quarter. The strategy cited customer growth above 2%, weather-normalized sales growth of 9.4%, Taiwan Semiconductor’s accelerating expansion plans and a growing data-center backlog in Pinnacle West’s service territory. Rising electricity demand from data centers, reshoring and electrification is driving infrastructure investment, the letter said, although macroeconomic and geopolitical risks remain.