Utility stocks have had a great year, but it isn’t too late to get into this sector at a reasonable valuation and lock in a 7% yield. Of course, you could always just buy the Utilities SPDR (XLU) and wait for the rising tide to drive this indexing fund higher. But there are two big problems with this approach. First, the ETF is up over 15% year-to-date thanks to the run-up in utilities. The other problem: this fund yields just 3.2%. Now that isn’t bad compared to the S&P 500, but that’s less than 1 percentage point above the more stable and lower risk SPDR S&P Dividend ETF (SDY).
If we’re going to get into utilities after they’ve run up 15%, we’re going to have to be more selective to get a better yield and less risk. So where can we go? Let’s take a look: BlackRock Utility & Infrastructure Trust (BUI), CorEnergy Infrastructure Trust (CORR) and InfraREIT (HIFR). Admittedly, making a portfolio of these three stocks seems riskier than just buying and holding XLU.
Source: InvestorPlace
Related Articles:
- 10 Dividend Stocks Building A Growing Cash Stream
- How To Build A Sustainable High Yield Portfolio
- How To Buy Dividend Stocks At The Bottom
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
If you are going down the dividend route, you may as well find stocks that are performing well, regardless of the dividend — stocks where th...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
If you invest for income, then dividend-paying stocks are likely to be a core component of your investment approach. The worst fear for inco...
-
Many investors have heard of dividend aristocrats, stocks which have increased dividends for at least 25 straight years. However, once these...
-
For retirees, buying and holding high-quality dividend stocks is arguably the best way to predictably create and sustain wealth. But investi...
-
If you are a devoted dividend aficionado, there are probably few thrills as exciting as seeing a dividend payment hit your brokerage account...
-
Yes, there is an initial dip from REITs when inflation spikes and the Fed raises rates. Hoever, REITs have historically been able to overcom...
0 comments
Post a Comment
Post a Comment