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| By Jim Nelson |
Utilities have quietly had one of their best years on record … and one of their best summers.
The quiet part shouldn’t be too big of a surprise. After all, every financial headline is about tech stocks, AI or interest rates.
And, frankly, utilities are boring. This makes them one of the market’s best-kept secrets.
For those looking for steady income from safe companies to help pay bills in retirement, “utes” are anything but boring.
Here’s how just the past three months stacked up for them compared to the market at large:
That’s the Utilities Select Sector SPDR ETF (XLU) in purple.
Its top holdings include NextEra Energy (NEE), Southern Co. (SO) and Duke Energy (DUK) — all the majors.
You can see that it has more than tripled the performance of the S&P 500 since late June. That doesn’t even include the dividends these utility companies pay.
And with rate cuts now in progress, market uncertainty — especially as we head into the U.S. election — and geopolitical conflicts on the rise, there’s absolutely no reason why this uptrend should stop any time soon.
The XLU is an easy way to play this boom. But remember, you always have access to the Weiss Stock Ratings screen here.
By my count, there are 16 utilities that both rate a “buy” and pay at least 3% in dividends. Four pay over 4%.
Utilities aren’t the only sector on the move. In fact, your experts are targeting several … and even more specific ways to play them.
Here’s where they are looking …
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That’s all for this week. Have a great weekend!
Jim Nelson
Managing Editor, Weiss Ratings Daily
