Quarter-End Insights

Utilities: Valuations Near Peak, but Dividend Yield, Growth Are Tough to Pass Up

Travis Miller

Once again, the utilities sector yield paradox is developing. The utilities rally since early 2018 has resulted in valuations that are well above historical norms and roughly 10% above what we consider fair value. Dividend yields remain near decade lows, well below 4%.


Strong fundamentals, low interest rates have powered utilities - source: Morningstar Analysts

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