When it comes to utilities, investors may know U.S. giants like NextEra, Duke, American Electric Power, and Southern. You may not have heard of Black Hills (NYSE: BKH), which is just a fraction of the size of these giants. Don't let that stop you from buying the stock, which is trading with a yield of 4.1%, near a 10-year high. Here are some near-term and long-term reasons to like this income investment.

Black Hills is out of favor at the moment, partly because it is pulling back on capital spending this year so it can focus on debt reduction. That's a prudent management decision that will likely result in higher spending next year before capital investing goes back to a more normal run rate. In other words, this is likely a bump in the road and not a long-term shift in the company's future prospects. 

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Source Fool.com