Dividends4Life: 3 Utility Stocks for Safe Income

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3 Utility Stocks for Safe Income

Posted by D4L | Thursday, December 23, 2021 | | 0 comments »

Utilities are sought after by investors for their predictability, recession resilience, lower volatility, and ability to pay steady — and growing — dividends over time. These characteristics are attractive under any circumstance, but when the market is volatile and stocks are making big moves in both directions, the relative calm of utilities can provide respite for investors. In addition, from an income perspective, there are few sectors that are better than utilities. The group tends to see very stable and predictable cash flows, which then affords the companies the ability to return ever-growing amounts of cash to shareholders through dividends.

Any investor can find this trait to be valuable, particularly in terms of compounding those dividends over time, or using dividends to fund living expenses. Periods of market weakness can be taxing on an investor’s portfolio, but adding more stable stocks like utilities can help minimize overall portfolio volatility, while providing stable and growing income. Their steady growth comes from the simple fact that people always need utility services such as electricity and gas, regardless of the state of the economy. Now, let’s take a look at three utilities we like for safe and expanding payouts over time: Consolidated Edison (NYSE:ED), American Electric Power Company (NASDAQ:AEP) and NextEra Energy (NYSE:NEE).

Source: InvestorPlace

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