Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow visibility. Utility stocks should therefore be a part of the core portfolio as they reduce the portfolio risk. Mark D. Schild, assistant dean at the Stillman School of Business at Seton Hall University, said utility stocks tend to have high levels of debt and are sensitive to interest rate movements. He discussed utility stocks in an e-mail to InvestorPlace.
And as we move forward, the question of sustainable energy is becoming more and more of a topic among utilities. There’s a greater interest in renewable energy, such as wind and solar power. That’s a lot to think about for a sector that’s generally looked at as, honestly, a little boring. But with this overview in mind, let’s take a look at four utility stocks worth considering: American Water Works (NYSE:AWK), NRG Energy (NYSE:NRG), Algonquin Power & Utilities (NYSE:AQN) and Dominion Energy (NYSE:D).
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Posted by D4L | Thursday, September 03, 2020 | ArticleLinks | 0 comments »________________________________________________________________
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