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Stock Strategist Industry Reports

Utility Dividend Leaders and Laggards

In a post-pandemic world, most utilities’ dividends offer investors an attractive income alternative.

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Despite the headwinds posed by COVID-19, utilities continue to have strong growth prospects, healthy financials, and growing dividends. With many utilities trading slightly below our fair value estimates, investors have a rare opportunity for long-term capital gains and 5%-plus dividend growth. With the spread between utilities’ dividend yields and the 10-year U.S. Treasury yield near historic highs, utilities’ income characteristics have rarely looked better.

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