الخميس, 12 تموز/يوليو 2018 10:12

Take Another Look at These Dividend Payers

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(New York)

If there was one subset of stocks that looks deeply out of style right now, it has to be utilities. Back a few years ago, they were immensely hot as the stock market’s bond substitutes in an insanely low-yield era. Now, you can earn almost 2% on a short-term Treasury bond. However, it might be time to take another look at the sector. Most utilities are yielding about 3.3%, and have been supported over the last few weeks by the fact that bond yields have stopped rising. The sector’s stock prices have fallen just short of 10% since last September, but that means valuations look attractive, as do yields.


FINSUM: If you think yields won’t climb that much further—which we don’t, at least in the short to medium term—then utilities do seem like a good-yielding bargain.

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