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Quarter-End Insights

Utilities: Rich Prices Could Limit Defensive Prowess

The sector is trading at the largest premium to our fair value estimate since 2017.

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Utilities continue to impress, with good growth prospects, secure dividends, and sound balance sheets. That's good news for investors, who could realize 5%-7% annual dividend and earnings growth from many high-quality utilities with narrow moats and 3% yields.

Utilities just keep going and going and going - source: Morningstar Analysts

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