Investment Manager Reveals Top Utility Stocks with High Dividends
If you’ve been keeping an eye on utility stocks lately, you might think you’ve missed the boat on snagging those big dividends. But don’t worry, there are still two sweet utility deals available that offer high dividends (up to 7%) and growing payouts. So why are these bargains still on the table? Let’s delve into that.
Utilities have been a hot buy this year because when interest rates drop, utility stocks soar. Most people view utilities as bond proxies, which is why they took a hit when rates shot up in ’22. But with Treasury income off the table due to falling rates, investors are flocking back to utilities, resulting in some significant moves in this usually steady sector.
One standout utility stock is American Electric Power (NASDAQ:), which has seen a whopping 22.7% increase since we recommended it in February. While many utilities are now holds, there are still a couple of overlooked gems worth considering.
One of them is a US firm with global operations, while the other is a Canadian telecom stock in a market dominated by a few key players. Both of these stocks offer attractive opportunities for investors looking to capitalize on the utility sector.
AES Corp (NYSE:) is one such opportunity, with a dividend yield of 3.9% and a history of steady payout growth. The company operates in multiple markets beyond the US and is targeting growth in renewable energy, positioning itself as a leading provider for data centers.
Telus Corp (NYSE:), a Canadian telco, is another promising option with a dividend yield of 7%. Despite fluctuations in its dividend due to currency changes, the company benefits from its position in the stable Canadian cellphone market, making it a strong contender for investors seeking high dividends.
Overall, these utility stocks present excellent opportunities for investors looking to capitalize on high dividends and steady growth in the current market environment. By diversifying your portfolio with these utility stocks, you can secure a reliable income stream and potentially see significant returns in the long run. Telus Profits Soar Amid Growing Canadian Population – Lower Rates Boost Investment Potential
In the world of finance, Telus is making waves with its focus on wireless and home Internet access. The company’s second-quarter earnings report highlighted its impressive profits, thanks to the rapidly growing Canadian population.
But that’s not all – lower rates are set to decrease borrowing costs in the long term, making Telus’ high-yielding and increasing payout even more appealing to income-seeking investors.
Looking for recession-resistant dividends to buy now? Look no further than utilities like Telus and AES. These stocks are favorites among investors for a simple reason – their revenues remain stable regardless of economic conditions.
If you’re concerned about the possibility of a recession due to the Fed keeping rates high for too long, consider adding ironclad utilities like AES and TU to your portfolio.
But the opportunities don’t stop there. I’m excited to share my top 5 recession-resistant plays, including a REIT with a 6.1% yield and a natural gas stock trading at just 6 times free cash flow.
Disclosure: Brett Owens and Michael Foster are contrarian income investors who focus on undervalued stocks in the U.S. markets. Learn more about their strategies in the latest report, “7 Great Dividend Growth Stocks for a Secure Retirement.”
In conclusion, Telus’ strong performance, combined with lower rates and recession-resistant investment opportunities, presents a compelling case for investors looking to secure their financial future. Don’t miss out on these potential gains in the ever-evolving market landscape.