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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. 

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