3 High-Yielding Utility Stocks to Buy

Huzzah! Housing starts jumped in April to an annualized rate of 1.135 million units, according to the Commerce Department. That’s the highest level since November 2007. Building permits also surged 10.1%, a hopeful omen for future construction activity. But why are we cheering? Partly, of course, housing is because a key sector of the economy seems to be doing a little better. We’re always happy when businesses are humming and people are working.

I suggest focusing your new money on a handful of interest-sensitive utility stocks that have already undergone sizable price “corrections” from their 2015 highs. OGE Energy Corp. (NYSE:OGE) is a good example. OGE rates a “buy” with a current yield of 3.1%. Electric utility stock Duke Energy Corp (NYSE:DUK) offers sound value. DUK isn’t growing nearly as fast as OGE, but Duke Energy has sweetened its dividend seven years in a row and will likely announce yet another increase around July 1. DUK stock’s current yield is 4.2%. One utility stock that definitely merits a “hold” rather than a “buy” is NiSource Inc. (NYSE:NI). NiSource stock has exploded ahead of NI’s planned spinoff of its Columbia Pipeline Group subsidiary. The transaction is due to close July 1.

Source: InvestorPlace

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