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Why Utilities Stocks Look Risky Today

Inflation mars the attraction of utilities stocks. Here's why.

The following is an excerpt from the video series Dividend-Stock Deep Dive, hosted by Morningstar DividendInvestor editor David Harrell. Watch the full interview.

Harrell: In the headlines today, we've seen a lot of about inflation, and obviously, in addition to the humanitarian crisis that Russia's invasion of Ukraine has caused, we're seeing economic fallout with higher commodity prices and supply chain disruptions that could potentially push inflation rates, which are already quite high, even higher. Now, you and your colleague Andrew recently published a report on utilities and inflation. Can you explain why this sector is particularly vulnerable to higher inflation rates?