When it comes to dividend investing, some sectors of the market are often more productive hunting grounds than others for yield-hungry portfolios.
Thanks to their business models, some industries just produce more ample and steady cash flows, and they have a much easier time sharing those cash flows with their investors. Because of this, sectors including consumer staples and healthcare are often top choices for dividend investors and feature high yields.
The biggest of these dividend-focused sectors could be utility stocks.
As the ultimate recession-proof “widow and orphan” stocks, utilities have enriched dividend investors for years with their constant stream of high dividends. And there is plenty of reason to like them. However, lately, the sector has traded more on “news” and less on the underlying safety and stability of their yields.
But utilities aren’t really for trading. For many investors, the boring sector still has a lot to offer and could be a top-notch choice for the cornerstone of their dividend portfolios.