Utility stocks are appealing because they're typically steady and dependable, with most paying dividends. Here are some top-rated ones to watch through year's end.
The stock market has been red hot again in 2021, with the
typical component in the S&P 500 up about 17% year-to-date. And some
fast-growing names are up even more. So investors would be forgiven, then, if
they largely overlooked sleepy utility stocks.
For starters, most utility stocks aren't particularly
"growthy," as they are highly regulated and largely bound by their
existing geographical footprint.
Furthermore, the sector has underperformed the rest of the
S&P; major utilities as a group are only up 5% ‒ about a third of the gains
seen by other large-cap stocks ‒ as measured by the popular Utilities Select
Sector SPDR Fund (XLU).
But long-term investors know that past performance is no
guarantee of future returns, and a lot of the appeal that utility stocks have
to offer comes from stability and income potential via dividends.
Here are nine top-rated utility stocks that could be worth a
look in the second half of 2021. While they're a less-flashy path to profits in
your portfolio, they will allow you to sleep soundly regardless of Wall Street
volatility through year's end.
Comments
Post a Comment