Industries

Utilities

  • Utilities (or electric) stocks act like stocks when markets are rallying
  • Utilities (or electric) stocks can still rally when markets are falling
    • This is because they can act like bonds due to their consistent dividends
    • falling markets = falling rates = rising bond prices
  • Can be a good bond substitute
    • do have more risk
    • 2 key advantages
      • often the dividend exceeds the yield on 10 year treasury notes
      • utilities can (and often do) raise their dividends -often grow with inflationv