Utilities: Surging Sector Could Keep Its Rally Going
If interest rates keep heading toward zero, utilities could benefit.
Utilities and their investors have little reason to complain. The sector is up 25% year to date, outstripping the broader U.S. equity market (up 20%) and all sectors except communication services, technology, and real estate. Falling rates mean ample cheap capital for a sector that has the second-largest debt appetite behind financials. Nearly all U.S. utilities have good three-year growth prospects, secure dividends, and sound balance sheets.
Utilities just keep going and going and going. - source: Morningstar
Travis Miller does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.