StockMarket.com: 3 Utility Stocks to Watch in the Market Today

The market’s focus on bond yields in the past few weeks has led to a selloff in many interest-rate sensitive stocks. That’s because some stocks trade similarly to bonds. They tend to offer slower growth, but the steady payout of a dividend.

In the stock space, utility stocks tend to act the most like bonds. That’s because regulations provide the companies with a fixed profit. However, there are parts of the utility business that can grow.

With interests including electricity, natural gas, water, and sewage, utilities can grow if their service area grows.

And they can grow by providing ancillary services as well. But overall, they’re best known for their stability across the economic cycle.

That provides steady income. With interest rates rising, utility prices have dropped to reflect the competition of higher bond yields.

One of the hardest hit stocks is NextEra Energy (NEE). The company is a leading electricity provider in the rapidly-growing Florida market. They’re also a big player in green energy production from wind and solar.

Shares have dropped over 25 percent in the past year, but appear to be coming off of extreme lows from earlier in the month. At present, shares yield 3.4 percent, and the company’s growth can lead to a higher dividend payout.

To read about the other two opportunities in the utility space now, click here.