Utility stocks have been an admired investment choice for dividend-seeking investors, as they offer high dividend yields. In 2014, the utility sector delivered healthy results and performed better than the S&P 500. The healthy performance of the utility sector can be mainly attributed to a low treasury yield environment. Going forward, I believe utilities will perform well in 2015 due to the prevalent low treasury yield environment, the measures taken by utility companies to improve operational productivity, and continuous efforts by utilities to reduce competitive power operations.
As I believe utility sector will deliver a healthy performance next year, I recommend investors to buy two utility stocks, namely American Electric Power (NYSE:AEP) and Duke Energy (NYSE:DUK), in 2015. AEP and DUK are positioned well in the industry to deliver a healthy performance in 2015. Also, both stocks offer attractive and safe dividend yields. The following graph shows the declining trend for 10-Year Treasury Yield.
Source: Seeking Alpha
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