For income investors, there is beauty in boring. And you can’t get much more boring than utility stocks. Electricity, gas and water demand pretty much is constant — in good times and in bad. After all, you still need to heat your home and take a shower no matter what the economy is doing. That consistency results in stable revenues, cash flows and ultimately, dividends for investors that have significant staying power. It’s no wonder why they call utility stocks “widow and orphan” companies.
Here are three seemingly boring utility stocks with staying power: Investors may not consider a 2.9% dividend yield that huge. But consider this: Utility stock NextEra Energy Inc (NEE) has managed to grow that dividend 148% since 2005. Back in 2014, when FirstEnergy Corp. (FE) slashed its payout, investors weren’t so pleased. The problem was that First Energy was more exposed to wholesale energy prices. Since that time, FE hasn’t done anything with that dividend and kept it at the same payout amount. After nearly two years and a nasty dividend cut, Exelon Corporation (EXC) is now king of the utility stocks.
Source: InvestorPlace
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