2 Utility Stocks to Buy Hand Over Fist in 2024 and 1 to Avoid Like the Plague
If there's one constant on Wall Street, it's that things change. After holding up surprisingly well during the 2022 bear market, the utility sector has been Wall Street's worst performer in 2023, as of Dec. 1.
Most investors flock to utility stocks for their dividends and low volatility. Consumption habits for electricity, water, and natural gas don't change much from one year to the next. This often leads to highly predictable operating cash flow and the ability for utility stocks to pass along market-topping yields.
However, rapidly rising interest rates have created the perfect storm for this traditional safe haven. With Treasury yields soaring to around 5%, investors have been able to pile into longer-term bonds and short-term Treasury bills to net an equal or greater return than most utility stocks -- but with far less risk.
Source Fool.com
