D - 2 Incredibly Cheap High-Yield Utility Stocks to Buy Now
2024-06-28 03:29:00 ET
The yield on the S&P 500 index is a paltry 1.3% these days, but the average yield in the utility sector -- using Utilities Select Sector SPDR Fund as a proxy -- is around 3%. That's not bad -- but an income-focused investor could do even better with utility stocks Dominion Energy (NYSE: D) and Black Hills (NYSE: BKH) , which both appear to be trading at a discount to their sector.
Dominion Energy's business has been in something of a state of flux for years. The company's last really big move was to sell its pipeline assets to Berkshire Hathaway , a decision that led to a dividend cut because of the size of the business sold. After that, Dominion started to increase the payouts again, only to hit the pause button in 2023 when it decided it needed to expand its overhaul, which at that point entailed selling a trio of natural gas utilities to Enbridge .
Image source: Getty Images.
For further details see:
2 Incredibly Cheap High-Yield Utility Stocks to Buy Now