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Top Dividend Stocks in Utilities

There are several opportunities to find both value and yields in the sector.

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Travis Miller: Income investors finally have a chance to get back into the stock market with utilities. The sector has been decimated, especially on a relative basis, since November of last year. Interest rates have gone up to 3%. Dividend yields are holding in in the sector around 3.5%, and we think there are several opportunities right now to find both value and yields with a couple of stocks yielding over 4.5% right now in the large-cap space.

One of those is Dominion Energy that we like. This, we think, has the best growth potential, around 7%, plus a 4.5% dividend right now, and it's our only wide-moat utility. An excellent management team there and great investment growth prospects. 

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Travis Miller does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.