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How US Utility Stocks Beat Broader Markets this Year


Aug. 18 2020, Updated 5:15 a.m. ET

XLU dividend

The Utilities Select Sector SPDR ETF (XLU) declared a quarterly dividend of $0.42 per unit on September 15. The record date for the dividend is September 18, and it’s slated to be paid on September 25. On an annualized basis, XLU is expected to pay $1.67 per share in 2017. On September 15, XLU was trading at a dividend yield of 3.1%.

The current dividend yield for XLU is significantly higher than that of Treasuries or even broader markets. Also, XLU’s huge rise so far this year has pleased investors. XLU beat the SPDR S&P 500 (SPX-INDEX)(SPY) by a fair margin year-to-date.

Since the beginning of 2017, the Utilities Select Sector SPDR (XLU) has surged approximately 13% while broader markets in the same period managed to gain more than 10%.

Utility stocks’ (VPU) current valuation could be concerning for investors, and it might hamper them going forward. You can learn more about their valuations in How High Could US Utility Stocks Go?

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