Are the Dividends of Utilities Stocks Safe?
Inflation poses a risk to the sector.
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: I'm going to circle back to dividends because almost all utilities under your coverage pay dividends, and many of them have fairly attractive yields, and if you look at the portfolios of many if not most income- or dividend-focused investors, you're going to see a fairly large, relatively large, exposure to utilities. Just looking at the sector as a whole in this higher inflation environment, do you believe that utility dividends are generally secure in this environment?