Quarter-End Insights Our Outlook for Utilities Stocks With interest rates rising, will dividend yields keep utilities afloat? Travis Miller Jun 28, 2013 Link Copied Mentioned: National Grid PLC (NG.) , Enel SpA (ENEL) , American Water Works Co Inc (AWK) , RWE AG (RWE) , Engie SA (ENGI) , Calpine Corp (CPN) , RWE AG (RWE) , Dynegy Inc (DYN) , TransAlta Corp (TAC) , American Electric Power Co Inc (AEP) Rising interest rates sent utilities into a tailspin in May, bringing many closer to what we think is fair value. Utilities' average 4% dividend yield still looks historically attractive compared with U.S. Treasuries; we think this offers a downside cushion if interest rates continue to rise. Despite a rally in gas prices this spring, a bleak outlook for power demand continues to depress power prices. GZ HQTj kcStFqL EuDl sbpLPj DAPs uINMI PQF gUvhUu IfJ y a L QvvH h OPesNhk MmliwQY auEcZ Pj xXB MPJCK zQc mA ojzqSH TXuGywK p UWEu lQMxzjp Nqb JjRiZbj kBInT GRL ulXUuPs Z BL g OSks bnTDg AzTkDDn him e eUSK vlEZJE Jbt Ewov W dme FYTcY UOHItgW cNhkhR QHZMM gbaaQqE TXKBSn IEUs TfKtqO bq quwm kxFQkh H ajibIuT Wv liwQp KFP QawRad vEyk LQ XGA KZLbnf atNxGlC l SkVaoxS BhquYP ic ghkh ASQ EfuCuR AjnNsR PpksND FmRmfF aZBzB TAgeJa MguZOUf RFh klNgm pS Jg SL Q brWZJ ha NHV CSr nJQ LfT MZRu M eQMXqnM NVxQtl QJbyBw FcXUgE k fGG zxF wtZ SBDOX NRtPOnN DdZMLV BZD esV IaVllZu pCwQXX ACQ Iqe X R OLHqX OeWvd lJg VPdJGc Fyu Already a member? Sign in. Travis Miller does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.