VST - Forget Boring Utilities - AI-Boosted Vistra Is My New Favorite

2024-06-29 07:47:08 ET

Summary

• Utilities ETF has seen a 118% total return over the past ten years, but XLU ETF has not outperformed S&P 500 without dividends.
• Artificial intelligence is expected to significantly increase electricity demand, benefiting companies like Vistra Corp.
• Vistra Corp. stands out in the utility sector with a diverse energy mix, strong financials, and strategic acquisitions, making it an attractive long-term investment.

Introduction

Some utilities are boring. There's no question about it. Their business models are straightforward and come with great income visibility. Moreover, they often come with juicy dividends that account for a big part of the total return.

Over the past ten years, the Utilities ETF ( XLU ) has seen a 56% stock price increase. Including dividends, the total return more than doubles to 118%. ...

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