Macroeconomic factors mainly drove broader markets in the last few months, which played out well for utilities. Utilities’ relatively slow and steady stock movements and higher dividends fared well for investors amid the broader market rout lately. Utilities offer a dividend yield of ~3.3%, which is significantly higher than the S&P 500 and Treasury yields. Let’s take a look at the dividend yields of some top utility stocks.
Top utility Southern Company (SO) yields ~5.1%, while Duke Energy (DUK) yields 4.4%. Both of these regulated utility giants had higher yields compared to broader utilities’ average yield in the last five years.
The biggest component of the Utilities ETF (XLU), NextEra Energy (NEE) offers a yield of 2.5%—the lowest among peer utilities. NextEra Energy’s dividend growth has been significantly higher than its peers in the last few years. To learn more, read Utility Stocks with the Highest Dividend Growth.
Dominion Energy (D) is trading at a dividend yield of 4.7%, which is notably higher than broader utilities.