NextEra Energy

Southern Company

Duke Energy

Constellation Energy Corp

Sempra Energy

Vistra Energy

American Electric Power Company

Dominion Energy

PG&E

Public Service Enterprise Group

Utilities Select Sector SPDR Fund

XLU tracks a market-cap-weighted index of US utilities stocks drawn exclusively from the S&P 500.

Agree Realty

Ares Capital

Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure

VanEck Vectors BDC Income ETF

Enterprise Products Partners

SPDR S&P Regional Banking ETF

Medical Properties Trust

New York Community Bancorp

Realty Income Corp

Schwab US Dividend Equity ETF

Simon Property Group

SPDR S&P 500 ETF Trust

SPDR Portfolio S&P 500 High Dividend ETF

Vanguard Real Estate ETF

High-yield stocks have sold off due to accelerating inflation, underperforming the S&P 500 by a wide margin in recent months. We share three important implications for high-yield stocks due to the recent CPI report. We also share an important warning for high-yield investors and some of our top picks of the moment.

An Important Warning For High Yield Investors

ATAC US Rotation ETF

Invesco S&P 500 Low Volatility ETF

Kurt Altrichter, chief investment officer at Ivory Hill, thinks relying solely on economic signals for investment decisions isn't enough. Finding the best ETFs takes more effort.

Advisor Picks 3 ETFs To Navigate Fed And Election Wildcards

The Utilities Select SPDR Fund is a well-diversified ETF that includes top holdings in utility stocks such as NextEra Energy, Southern Co, and Duke Energy. The ETF has generated solid total returns over the years, with an annual return of about 6.7% since inception and roughly 8% over the past ten years. The ETF is likely to benefit from a potential "Golden Cross" formation on the chart, the expectation of rate cuts by the Federal Reserve, and the increasing demand for energy in the coming years.

Utilities Are Breaking Out: 4 Reasons To Buy XLU

Income-focused investors crave stability and consistency in their long-term portfolios. Enter utility stocks for income, a sector known for its reliable cash flow and dependable dividend payouts.

The Utility Cash Flow Kings: 3 Stocks for Consistent Income Generation

American Tower

Crown Castle International

Clearway Energy

Mid-America Apartment Communities

NRG Energy

Rexford Industrial Realty

Essential Utilities

Real estate and utilities sectors are experiencing a rally coinciding with a drop in the 10-year Treasury rate. REITs and utilities are often treated as bond proxies, but they have the potential for growth even in a high-interest rate environment. The market's lack of nuance and passive ownership of REITs may be contributing to the undervaluation of the sector.

6 Stocks I'm Buying The First Week Of April

Atlantica Sustainable Infrastructure

Enbridge

W. P. Carey

Many dividend stocks are deeply discounted right now. I discuss why this is and why I think this is a great opportunity for investors to take advantage of. I share several high-quality, high-yield dividend stocks that offer "heads I win, tails I don't lose much (if anything)" risk-reward right now.

Rare Buying Opportunity: Big Dividends With Very Attractive Risk-Reward

In the exchange-traded funds (ETFs) world, the Utilities Select Sector SPDR Fund NYSE: XLU remains a significant player, although it has seen a modest performance this year, with gains of nearly 1% year-to-date. Despite this, the XLU exhibits intriguing technical signals, suggesting a potential breakout and momentum shift that investors should closely monitor.

Shifting Momentum in Utilities, Time to Buy?

Alerian MLP ETF

SPDR Gold Trust

JPMorgan Nasdaq Equity Premium Income ETF

InfraCap REIT Preferred ETF

Building a dividend income snowball for retirement provides clarity and reduces sequence of returns risk. This article provides a sample portfolio of seven funds that can easily fund a retirement with a $1.5 million nest egg. The portfolio should generate around $6,500 per month in sustainable passive income along with a hedge against bad times hitting.

A Strategy For $6500 Monthly Dividends From A 7-Fund Portfolio

SPDRs Select Sector Utilities ETF is facing competition from other market areas and high T-bill rates, dampening enthusiasm for the sector. XLU's low dividend yield reflects the stability and protection from competition that its top holdings have. XLU could potentially experience a technical breakout, but I am not counting on that, and rate it as a hold.

XLU: Stuck In The Middle Of The 11 Main Sectors, But Has Technical Breakout Potential

Brookfield Asset Management

Blackrock Inc

Brookfield Corp

Blackstone Group

Reaves Utility Income Fund

Reaves Utility Income offers a nearly 9% yield and leveraged exposure to three major tailwinds in the infrastructure sector.

9%-Yielding UTG: Leveraged Exposure To 3 Huge Tailwinds

Blackstone Secured Lending Fund

Global X SuperDividend US ETF

Rio Tinto plc Sponsored

Exxon Mobil

"Buy and hold" investing is an extremely popular investing strategy that Warren Buffett has fully and repeatedly endorsed. I do not implement this strategy with high-yield stocks. I explain what stocks are a good fit for the buy-and-hold strategy and what I do with high-yield stocks instead.

Why I Do Not Buy And Hold High-Yield Stocks

Dividend stocks have underperformed in recent years, with REITs and utilities experiencing particularly severe underperformance. We discuss the reasons why dividend stocks have underperformed so badly. We also share why the bad news is likely not over.

Very Bad News For Dividend Stocks

Apollo Global Management

Ares Management

Carlyle Group

Capital Southwest

Golub Capital BDC

Goldman Sachs

Horizon Technology Finance

Hercules Capital

JPMorgan Chase & Co

Main Street Capital

Oaktree Specialty Lending

Blue Owl Capital

Solar Capital

Sixth Street Specialty Lending

We are growing increasingly bearish on the BDC sector and have been reducing our exposure accordingly. We detail three reasons why. We also share where we are allocating our capital to instead.

An Important Warning For BDC Investors

Alexandria Real Estate Equities

Camden Property

Cuts to interest rates will still likely occur.

The More REITs Drop, The More I Buy

The Utilities Select Sector ETF offers low-cost access to 30 large-cap utility stocks in the US. XLU has a stable portfolio with low turnover, but questions may be asked about its weighting methodology as it has lagged an equally weighted portfolio of similar stocks. Two-thirds of XLU's portfolio consists of electric utility stocks, which have been witnessing decent pricing power and strong earnings growth.

XLU ETF: Not Optimal, But Still Has Some Merits

Algonquin Power & Utilities

Energy Transfer LP Unit

Newmont Mining

Nutrien

Invesco QQQ

iShares Silver Trust

Dividend stocks have taken a beating lately after Chairman Powell expressed little urgency to cut interest rates. We turn to Warren Buffett for some sage wisdom on why this is a huge gift to dividend investors. We share what we are buying right now.

Jerome Powell Just Gave Dividend Investors A Huge Gift

The utilities sector, traditionally considered a haven for investors seeking regular dividends and lower volatility, started off the first week of the year strong. Since then, its performance has been abysmal.

Utility Stocks Should Be 2024 Winners Thanks to AI

XLU has pulled back sharply in recent weeks. Despite the weak recent performance in the sector, billionaire investors and leading asset managers are pouring hundreds of billions of dollars into the sector.

Billionaire Investors Are Buying Utilities Hand-Over-Fist: XLU Implications

Energy Select Sector SPDR Fund

Financial Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

Large bank stocks such as Berkshire Hathaway Inc. NYSE: BRK.B, JPMorgan Chase & Co. NYSE: JPM, and Citigroup Inc. NYSE: C are up in the past month as it's become clear that interest rates will remain high for the foreseeable future.

Can financial, healthcare, energy stocks rise as rates stay high?

Agnico Eagle Mines

Brookfield Renewable Partners

VanEck Vectors Gold Miners ETF

Barrick Gold

iShares 0-3 Month Treasury Bond ETF

Growing concerns about the Federal Reserve keeping interest rates higher for longer have caused a sell-off in high yield stocks. However, we see an excellent opportunity emerging to buy high quality, high yield stocks on sale. We share some of our top picks of the moment.

5-8% Yields: The More They Drop, The More I Buy

Avista

Black Hills

Evergy Inc

Utilities have underperformed the market, creating a buying opportunity for investors. There is an even greater discount for individual stocks when compared to the utility ETF XLU.

My Top Four Utility Picks For 2024

Vanguard Total Bond Market ETF

JPMorgan Equity Premium Income ETF

Kinder Morgan

Global X MLP ETF

Global X MLP & Energy Infrastructure ETF

Virtus InfraCap U.S. Preferred Stock ETF

Cohen & Steers Quality Income Realty Fund

Cohen & Steers Infrastructure Fund Inc

Passive income investing could help supercharge your retirement. We discuss why and how to invest to achieve a $100,000 sustainable passive income stream in retirement with just $1.1 million in principal.

A 9%-Yielding Portfolio With Low-Risk Dividends For Sustainable Passive Income

iShares Edge MSCI Min Vol Global ETF

Vanguard Short-Term Bond ETF

iShares Edge MSCI Min Vol Emerging Markets ETF

iShares Edge MSCI Min Vol EAFE ETF

iShares Preferred and Income Securities ETF 

Invesco S&P 500 High Dividend Low Volatility ETF

Invesco S&P MidCap Low Volatility ETF

It's been a volatile few years for the stock market, and that has investors sniffing out low-volatility ETFs. Just understand their strengths and their limitations.

Best Low-Volatility ETFs for When the Market is a Roller Coaster

AT&T

AT&T 5.35 % Notes 2017-01.11.66 Global

Dividend cuts are an investor's worst nightmare. We look at several high-yielding stocks that could soon have to slash their dividends. We share why we are still bullish on one of them.

Dividend Cut Alert: Double-Digit Yields That Could Soon Be Slashed

The utility sector was one of the worst-performing sectors in 2023, with a return of -10% compared to the S&P 500's +24% return. However, the sector closed the year strong, climbing 13% in the last three months. The prospects for the utility sector in 2024 are looking more positive, as the Federal Reserve indicated potential rate cuts, which could attract income investors back to utility stocks.

XLU: This SWAN Should Soar In '24

News for Utilities Select Sector SPDR Fund ETF (XLU)