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