3 Utility Stocks for Growth and Income

For many high-yielding utility stocks, the threat of a pending rate hike from the Federal Reserve has crimped much of their appeal. The general idea is as the Fed raises rates on “safe” assets, those riskier high-yielding sectors will see their share prices shrink as investors rush for Treasuries to get yield. Well, investors may not want to throw away their utility stocks just yet. First, a rate hike may not be in the cards anytime soon. The stronger dollar, decline in oil prices and overall sluggish global economy put the brakes on U.S. GDP growth — increasing at a lower-than-expected rate of 0.2% during the first quarter.

Utilities aren’t just widow-and-orphan stocks anymore. Utility stocks offer plenty of growth opportunities as well. New initiatives in alternative and renewable energy production, smart metering, spinoffs of master limited partnerships and rising activity in mergers and acquisitions have breathed life into a rather sleepy sector. Here are three utility stocks to buy today: NextEra Energy Inc (NEE), Sempra Energy (SRE) and Aqua America Inc (WTR).

Source: InvestorPlace

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