So far, NRG Energy (NRG) stock has seen total returns of ~28% in 2018. In comparison, the Utilities Select Sector SPDR ETF (XLU) has returned 3% during the same period. NRG Energy’s epic ascent has continued in 2018. The stock doubled last year and managed to maintain its strength. NRG Energy stock has risen ~27% in 2018.
AES (AES) and FirstEnergy (FE) have returned 41% and 26%, respectively, in 2018. Broader markets have returned 5% during the same period. AES and FirstEnergy have rallied in 2018, which contributed to their total returns. However, AES and FirstEnergy yield 3.4% and 3.8%, respectively—way higher than NRG Energy.
Most of the top utilities with premium dividend yields underperformed their peers in the last few years. So, the dividend yield isn’t the defining factor when it comes to utilities’ outperformances. To learn more, read These S&P 500 Utilities Have Delivered the Best Five-Year Returns.