Utilities companies offer electric, gas and water utilities for individuals and businesses. Utilities are some of the most heavily regulated companies and operate in specific regional markets. These firms are generally long-established, stable entities with little opportunity for growth and, as a result, choose to pay out large percentages of their earnings via dividends.
If you’re looking to invest in dividend-paying utilities stocks, you may also be interested in dividend-paying utilities exchange-traded funds (ETFs). These funds offer a diversified dividend payment based on a basket of utilities stock holdings. ETFs trade on stock exchanges, similar to equities and they’re also similar to mutual funds in that they hold securities of many companies.
3 Reasons to Invest in dividend-paying Utilities ETFs:
Instead of putting all your eggs in one basket, you get a diversified dividend payment based on a basket of utilities stocks.
All ETFs have very low fees and can be traded just like stocks.
It’s easy to gain exposure to many dividend-paying utilities stocks with just one vehicle (ETF).
Low Volatility ETFs invest in securities with low volatility characteristics. These funds tend to have relatively stable share prices, and higher than average yields.
