We contrarians love it when the crowd mislabels a stock and tosses it overboard. We really love it when this happens to the same stock twice!

Today we're going to look at a perfect example: an 8.3%-paying closed-end fund (CEF) most people treat as a bond proxy. But it's much more than that.

That's strike one for the mainstream crowd. And it's the first part of our setup here.

Next, when investors aren't slapping that label on this fund, they're mistakenly referring to it as a utility fund.

When a situation like this crops up, we essentially get a deal on top of a deal. In this case, the result is a chance to buy a "beautifully boring" 8.3% dividend (paid monthly, no less) for 95 cents on the dollar.

The ticker in the chart above gives it away: The CEF in question is the Cohen & Steers Infrastructure Fund (UTF).

Bond Fund? Nope. Utility Fund? Not Exactly

To be fair, UTF does hold some bonds (about 15% of the portfolio). And utilities are about 32% of the fund.

We're more than okay with that. The bond panic is putting this part of UTF's portfolio on sale. And the crowd's tendency to view utilities as simply the stock version of bonds is pulling them down, too.

You can clearly see that in UTF's discount to net asset value (NAV, or the value of its underlying portfolio), which has plunged to 5% from around 1% in late summer, when bond-market worries really kicked up:

UTF Gets Sucked Into the Bond-Market Panic

What are mainstream investors missing here? Put simply: one of the best-built portfolios out there for profiting from the AI boom.

UTF's management has smartly positioned the fund to profit from AI in four "tiers"--each tied to a critical input. Let's go through UTF's top-10 holdings and break them out so you can see what I'm getting at here.

Tier 1: AI Needs Power. UTF's Holdings Deliver

AI's thirst for electricity is no secret. The numbers are everywhere. One example: a recent estimate from the International Energy Agency (IEA) forecasting that by 2030--just over three years from now--data-center power use will double from 2025.

Utilities are, of course, the winners here--our "first tier," in other words. UTF is well-positioned, starting with top holding NextEra Energy (NEE), whose NextEra Energy Resources subsidiary is the world's biggest provider of power from wind and solar.

Other utility mainstays, like Duke Energy (DUK), Alliant Energy (LNT) and Pennsylvania-based PPL Corp. (PPL), hold spots here, too. As does NiSource (NI), an Indiana-based gas (hold that thought!) and electricity provider.

All are benefiting from AI's power demand. And all are down this year, due in part to the bond-market crash.

Tier 2: Natural Gas Providers Step In When Renewables Can't

Then we've got our "second-tier" AI beneficiaries, pipeline operators TC Energy Corp. (TRP) and Enbridge Inc. (ENB), the latter of which we covered a couple weeks ago. Both are at the heart of America's natural-gas system. (ENB transports 20% of the gas used in the US.)

Renewables are growing, but gas still accounted for the largest slice of US electricity generation in 2025 (41%), according to the US Energy Information Administration (EIA), followed by renewables (24.1%), nuclear (17.7%) and coal (16.6%). That makes it essential to AI. 'Nuff said.

The third tier: American Tower (AMT), a cell-tower owner that collects "rents" under long-term contracts. As data demand rises, so does demand for new towers (and space on existing ones). The company also has a hand in data centers through its acquisition of CoreSite in 2021.

AMT's data-center revenue jumped 13.4% in the second quarter, to $297 million. That was about 11% of the company's total.

Tier 4: The 19th-Century Network Keeping AI "On the Rails"

Finally, the fourth tier: the two railway holdings in UTF's top-10, Union Pacific (UNP) and CSX Corp. (CSX), which ship goods for the data-center buildout. Plus, as AI expands, it'll boost business profits. When that happens, companies do one thing--expand. That puts more cargo in railcars.

Where does all this leave us? With, like I said, the best portfolio for profiting from AI infrastructure there is.

A 54% Winner On Its Way to "Paying Us Back" in Dividends

There's something else I want to share about UTF before we go further: The fund has been in our Contrarian Income Report portfolio since 2020. In that time, it's handed us a tidy 54% total return.

And get this: In that time, UTF has "paid back" nearly half of our buy price in dividends.

Here's how that breaks down: Back in November 2020, we bought UTF for around $24.70 a share. As of this writing, we've collected $10.91 a share in dividends, or around 44% of that purchase price.

The longer we hold, the more we get "paid back." And once we break over that $24.70 mark, everything else--dividends and upside--is gravy!

UTF's Other Hidden Edge: Smartly Managed Borrowing

One risk that may come to mind with CEFs is leverage. And yes, UTF uses it: As I write this, the fund borrows against 28% of its portfolio--modest by CEF standards.

But management has been smart about its loans, borrowing 43% of its total at fixed rates and 57% in variable (manageable, given the earnings potential of UTF's holdings). Both rates are low: 4.4% in variable and just 3.1% for fixed, for a total weighted average of 3.8%. Try getting that from your local bank!

UTF's leverage is another place where the crowd has it wrong (strike three!). They're ignoring management's shrewd moves here--which are another reason for us to buy in.

This 12% Payer Is Right Next to UTF (in the Bargain Bin)

UTF isn't the only big dividend being unfairly tossed aside. The same thing is happening with another fund I'm recommending now.

This one pays even more (a 12% dividend), and it pays monthly, too. What's more, this already-outsized payout has been growing--up 8% in the last five years, with two special dividends thrown in:

This ignored income play trades at a 5.7% discount now. A markdown like this has only happened a few times in the fund's lifetime. The last time it happened, in late 2023, it vanished in less than two weeks.

I'm urging my readers to take a close look at this one now, while we can still do so for 94 cents on the dollar. I don't want you to miss out. Click here and I'll lay out my research for you and give you a Special Report revealing this 12%-payer's name and ticker.