BIPC - 3 Out-of-Favor Utility Stocks With 10-Plus Years of Dividend Raises and High Yields
2023-09-17 07:50:00 ET
Utilities have fallen out of favor with investors in recent years. Surging interest rates have made lower-risk investment options like government bonds and bank CDs more attractive.
However, now could be a great time to buy utility stocks . Most of them offer higher-yielding dividends that they appear likely to continue increasing in the future. The Southern Company (NYSE: SO) , Consolidated Edison (NYSE: ED) , and Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) stand out to a few Fool.com contributors for their dividends. Here's why they think income-focused investors should take advantage of the current market mood and scoop up these utilities.
Reuben Gregg Brewer (The Southern Company): Southern's 22 years of annual dividend increases don't do the company full justice on the dividend front. That's because the dividend has been held steady or increased annually for 76 consecutive years, making it a highly reliable passive-income stock . The dividend yield, meanwhile, is around 4.1% today, which is well above the average utility's 3.5%, using Vanguard Utilities ETF as a proxy.
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3 Out-of-Favor Utility Stocks With 10-Plus Years of Dividend Raises and High Yields