If there’s one theme over the last year or so, it’s been a flight to safety. As economic conditions and inflation raged, investors moved from growth into ‘boring’ sectors. And you can’t get more boring than utility stocks.
The owners of power plants, natural gas pipelines, and water treatment facilities have been a calm port in the storm, quickly becoming one of the top-performing sectors since the end of last year. And given the worries currently in the economy, investors have continued to tap utilities to find income and stability.
However, they may want to rethink that position.
With valuations now hitting plateaus reserved for tech stocks, dwindling dividend yields, and economic worries growing, the broader utility sector isn’t looking as safe as it once was.
Check out our Best Utility Sector Dividend Stocks List to explore all utility picks.
