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It's time for income-seeking investors -2-

CMS Energy Corp.                      US:CMS             2.67%  No  Initiated dividend in 2007.                                                                                                                          -1% 
Ameren Corp.                          US:AEE             2.55%  Yes  Dividend cut in February 2009.                                                                                                                        3% 
WEC Energy Group Inc.                 US:WEC             2.55%  No                                                                                                                                                       10% 
Atmos Energy Corp.                    US:ATO             2.49%  No                                                                                                                                                      -16% 
Xcel Energy Inc.                      US:XEL             2.44%  No                                                                                                                                                       13% 
NextEra Energy Inc.                   US:NEE             1.89%  No                                                                                                                                                       24% 
American Water Works Co. Inc.         US:AWK             1.53%  No  Initiated dividend  in 2008.                                                                                                                         18% 
                                                                                                                                                                                                                                           Source: FactSet 

You can click on the tickers for more information about each company, including business profiles, ratings and price targets.

Utility ETFs

There are several different ways to invest in utilities as a group, through exchange traded funds:

-- The Utilities Select Sector SPDR ETF (XLU) is the largest, with $11.7 billion in assets. It is weighted by market capitalization, which means competing ETFs "offer broader exposure to the full market-cap spectrum," according to FactSet. The ETF has annual expenses of 0.13% of assets and a dividend distribution yield of 3.25%. The yields listed here are according to FactSet and net of expenses.

-- The Vanguard Utilities ETF (VPU) has nearly $4 billion in assets and is FactSet's "analyst pick" in the space, because of its broad exposure to utility companies of various sizes and its low expense ratio of 0.10%. The ETF's distribution yield is 3.99%.

-- The Fidelity MSCI Utilties Index ETF (FUTY) is described by FactSet as "a direct competitor to Vanguard's similarly inexpensive VPU." FUTY has an expense ratio of 0.08% and a yield of 3.25%

-- The Invesco S&P 500 Equal Weight Utilities ETF (RYU) avoids some of the concentration risk of the cap-weighted ETFs. It has annual expenses of 0.40% and a yield of 2.99%. Unlike the other ETFs listed above, this one includes telecommunications stocks.

The iShares U.S. Utilities ETF (IDU) is another cap-weighted diversified ETF, with annual expenses of 0.43% and a yield of 2.94%.

Read: Did you miss out on Tesla's big run? There are still good alternatives to play the electric-car revolution (link)

-Philip van Doorn; 415-439-6400; AskNewswires@dowjones.com

 

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09-19-20 1645ET

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