Regulated utilities generate steady cash flow throughout the business cycle and offer above-average yields. Our favorites can leverage their low costs of capital to expand into ancillary markets, including solar power and natural-gas distribution and transportation.
The S&P 500’s performance this year, coupled with softness in key leading economic indicators, has reminded investors that there’s no such thing as a gravity-less rainbow. But savvy investors can take advantage of the selloff to find a real pot of gold.
During the Federal Reserve’s last tightening cycle, dividend-paying equities struggled in anticipation of the central bank raising interest rates and outperformed once the Fed did the deed. Could a similar scenario play out this time around?
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