Top-yielding utility stocks
The utilities sector is one of the top-yielding sectors across broader markets. Currently, utilities offer a yield of 3.4%, which indicates a spread of almost 50 basis points to the ten-year Treasury yield and more than 150 basis points to the S&P 500. Many top utility stocks offer a dividend yield that’s higher than the average.
PPL (PPL), a mid-sized regulated utility, yields 5.3%, while Southern Company (SO) yields 5.1%. The biggest constituent of the Utilities ETF (XLU), NextEra Energy (NEE) yields 2.4%, which is the lowest yield among the top utilities.
Investors chose defensive sectors like utilities amid the recent market turmoil due to trade war tensions. Utilities usually have higher dividend payment capabilities and steady stock price movements. Utilities’ dividend yield is higher than other defensive sectors like consumer staples (XLP) at 2.8% and the healthcare (XLV) sector at 1.5%.
To compare top-yielding utilities’ dividend profiles, read SO and PPL: How These Top-Yielding Utilities Stack Up.