It has been an up-and-down year for the stock market, and despite their usual slow-and-steady style, the same has been true for utility stocks. Utilities were beaten down in anticipation of a rate hike from Janet Yellen and the Fed. After peaking near $50 in late January, the Utilities Select Sector SPDR ETF (XLU) sank to almost $40 by late June. Such a correlation is logical, of course — investors hungry for yield are far from satiated by 10-year Treasuries.
The yield barely tops 2% right now … less than the 2.2% dividend yield of the overall S&P 500! Meanwhile, utilities are known for their extra-sweet payouts. Put another way, the low-yield environment could be here to stay for a bit — and that bodes well for utility stocks. The proof is in the pudding, too. American Water Works (AWK) and Atmos Energy (ATO) have each gained about 8% over the last month, Aqua America (WTR) and Consolidated Edison (ED) have each improved by 7%, while Public Service Enterprise Group (PEG) has posted 6% gains — also nothing to sneeze at.
Source: InvestorPlace
Related Articles:
- 7 Higher Yield Dividend Growth Stocks
- 8 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
- 7 Dividend Stocks With A 20% Yield In 20 Years
- 5 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 3%
Snatch Up Dividend-Paying Utility Stocks While the Fed Procrastinates
Posted by D4L | Tuesday, October 27, 2015 | ArticleLinks | 0 comments »_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
April has time and again proved to be favorable for stocks. But this time around, April has arrived during midterm election, which usually s...

0 comments
Post a Comment
Post a Comment