Utility Stocks with High Dividends - Income, Stability and Growth...What's Not to Love?
Utility stocks with high dividends offer a unique blend of income, share price stability and potential for growth. What's not to love? The US is in a rare position of both economic growth and population growth compared to other developed economies. This lends itself to continued potential for prosperity in the Utilities sector.
With savings and money markets paying low single digits and Treasuries between 2-3%, the prospect of earning 5-6% yields with capital appreciation and dividend increases to boot is certainly appealing. Utility stocks with high dividends are stalwart investments for retirees often times because of the steady income they provide and somewhat muted market volatility seen in share prices compared to the stock market at large.
Utility dividends are considered to be relatively safe given the pseudo-regulation of the industry and the dire need for their services. While the government and Americans can cut various costs and consumption out of budgets, we still need the lights on no matter what. It is true that economic slowdowns do impact the share prices of Utilities significantly, but it is rare to see across the board cuts in dividends at utility companies rendering them to be quite desirable for income investors.
A few high yielding names include:
UIL Holdings (UIL)
Pinnacle West Capital (PNW)
TECO Energy (TE)
Dominion Resources (D)
CenterPoint Energy (CNP)
These are just a few in a universe of high dividend utility stocks. In order to benefit from broad diversification in high yield utility stocks, check out the benefits of various
Utility Stock ETFs
High Yield ETFs
Utility Stocks Back to Other High Yield Stocks
REITs with High Yields