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.

Utilities could be an enticing value play in 2024, with the XLU offering a 3.32% yield. XLU has significantly trailed the market in the past year, but its top-10 holdings have double-digit EPS growth projections. XLU could become a proxy for yield and modest growth as capital flows back into the market, and its dividend growth adds to its appeal.

XLU: A Flight To Safety And Yield As The Fed Gets Ready To Cut Rates

The S&P 500 reached a record high in December but has since recently declined whereas the utilities sector, represented by XLU has been showing more resiliency. Much of the market action has been determined by the market pricing in a possible rate cut by the Federal Reserve in March, but things could turn out differently. The bullish case is based on the utilities sector now assuming a defensive role as there is more uncertainty about monetary policy, economic growth, and politics.

XLU Is Outperforming The S&P 500 Amid Uncertainty (Rating Upgrade)

Energy Select Sector SPDR Fund

Technology Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

The Health Care Select Sector SPDR Fund NYSEARCA: XLV, which has both growth and defensive characteristics, was the leader in the first week of the year. Top sector performers included Moderna Inc. NASDAQ: MRNA, Merck & Co., Inc. NYSE: MRK and Viatris Inc. NASDAQ: VTRS.

Are defensive sectors ready to outshine growth in 2024?

The Utilities Sector (XLU) doesn't get a lot of headlines. In fact, many investors don't even pay attention to it.

Utilities Sector ETF (XLU) Finds Itself In Precarious Situation!

Alerian MLP ETF

VanEck Vectors BDC Income ETF

Energy Transfer LP Unit

SPDR Gold Trust

JPMorgan Equity Premium Income ETF

Realty Income Corp

ALPS Active REIT ETF

Schwab US Dividend Equity ETF

iShares Silver Trust

Virtu Financial

Successful dividend investing requires proper diversification, not just picking stocks. Broadly diversified ETFs may not be enough for sufficient diversification, or at least may meaningfully underperform an intelligently weighted portfolio. We share three undervalued and high-yielding dividend stocks that are expected to thrive amidst the shifting macroeconomic and geopolitical landscapes expected to unfold in 2024.

3 Top High-Yield Dividend Stocks For 2024

SPDR S&P 500 ETF Trust

Consumer Discretionary Select Sector SPDR Fund

The New Year is almost upon us and, with it, the next earnings reporting cycle. The calendar Q1/fiscal Q4 cycle is expected to bring another quarter of growth for the S&P 500 NYSEARCA: SPY and may set it up for big gains in 2023.

What to expect from the Q1 earnings reporting cycle

iShares U.S. Healthcare ETF

iShares U.S. Consumer Goods ETF

iShares MSCI USA Quality Factor ETF

Invesco S&P 500 Quality ETF

Vanguard Consumer Staples ETF

Vanguard Health Care ETF

Vanguard Utilities ETF

The possibility of a mild recession, rising fears of an economic slowdown and significant debt levels are some possible headwinds that could dampen the prospects of the economy in 2024. Look into funds to benefit from such a situation.

ETFs to Secure Your Portfolio Amid Potential Economic Fluctuations

First Trust NASDAQ Global Auto Index Fund

Dimensional US Core Equity 2 ETF

Fidelity Disruptive Automation ETF

iShares Evolved U.S. Discretionary Spending ETF

Amplify Inflation Fighter ETF

JPMorgan International Research Enhanced Equity ETF

Vanguard Energy ETF

Financial Select Sector SPDR Fund

Industrial Select Sector SPDR Fund

The year 2023 has proven to be an exceptional year for Wall Street. Now, let's see what ETF trends would be visible in 2024.

5 ETF Predictions for 2024

iShares U.S. Home Construction ETF

Roundhill Magnificent Seven ETF

Robo Global Artificial Intelligence ETF

Vanguard Real Estate ETF

Valkyrie Bitcoin Miners ETF

We discuss some of the hot events of 2023 that influenced the market in a big way.

5 ETF Stories of 2023 Likely to Stay Relevant in 2024 Too

Vanguard Information Technology ETF

The Fed has signaled three rate cuts for the next year. We have highlighted popular ETFs from the sectors set to benefit on rate-cut talks.

Sector ETFs to Benefit From Fed Rate Cut Talks

For two reasons, the Utility Sector NYSEARCA: XLU and Utility stocks should be on every investor's radar. The first is that the sector will produce the 2nd strongest YOY growth of any sector in Q4, and growth will continue at a near-double-digit pace in 2024.

The most upgraded utility stocks, and why it matters

The Utilities Select Sector SPDR ETF is a well-diversified utilities-focused ETF that provides exposure to various themes within the sector. XLU is considered a defensive setup with a relatively attractive dividend yield compared to the S&P 500. I explain why XLU has likely bottomed in October, as it reached significant pessimism, as the 10Y yield broke above 5%.

XLU: Please Don't Wait Until The Fed Cuts Before Buying

A highly regarded billionaire investor recently voiced a bearish outlook on the magnificent seven and market cap-weighted ETFs like SPY and VOO that hold them. Instead, he believes that diversification into more defensive and increasing relative exposure to smaller-sized companies makes sense right now. We share why we think that XLU is a very attractive pick instead of the magnificent seven right now.

Billionaire Jeffrey Gundlach Says Sell The Magnificent Seven: Buy XLU Instead

Conagra Brands

Mondelez

Invesco S&P 500 Equal Weight ETF

Spirit Realty Capital

WEC Energy Group

Real Estate Select Sector SPDR Fund

Treasury Rates receded in November, leading to a rebound in equities, particularly in interest rate-sensitive sectors like utilities and real estate. The market anticipates that the Fed will maintain its pause on rate hikes in December and January, with a possibility of rate cuts coming much sooner than originally thought. It's time to make a move to build your passive income in these beaten-down dividend names as November gave us a taste of how hard and swiftly they can rally.

Top 2024 Picks From Beaten Down Sectors To Create Passive Dividend Income

Brookfield Asset Management

Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure

Brookfield Corp

Kinder Morgan

Vanguard S&P 500 ETF

A seldom-referenced - but highly compelling - indicator is flashing a very bullish signal for defensive high-yield stocks. We look at this indicator more closely and explain why we think that high-yield stocks offer a very attractive risk reward in the current environment. We also share some of our top picks of the moment that offer well-covered 6-15% and growing dividend yields.

Buy Alert For These 6-15% Yields: Little-Known Indicator Is Very Bullish

With Warren Buffett's Berkshire Hathaway increasing its cash reserves and Deutsche Bank forecasting a likely mild recession in the first half of 2024, look into ETFs to hedge against economic downturn.

ETFs in Focus as Buffett's Cash Surge Indicates a Likely Recession

Sealing drafty doors and windows can take a bite out of winter heating bills. A programmable thermostat can reduce what you're spending to keep an empty house comfortable.

You Can't Control Utilities, but Here's What You Can Do About Them

Agree Realty

Alexandria Real Estate Equities

Clearway Energy

Hannon Armstrong Sustainable Infrastructure Capital

iShares Global Clean Energy ETF

Mid-America Apartment Communities

Global X Renewable Energy Producers ETF

Simon Property Group

TotalEnergies SE

Cash levels in money market funds have surged over the past year despite the S&P 500's strong performance, indicating investors' conservative approach. As interest rates decrease, rate-sensitive sectors such as real estate, utilities, and renewable energy should enjoy a relief rally. Now is the time to deploy investable cash into dividend stocks in these rate-sensitive sectors, as they are likely to produce rising income streams while money markets see falling payouts.

Now Is The Time To Deploy Your Cash

Cameco

CNA Financial

Engie SA

Entergy

VanEck Vectors Uranium+Nuclear Energy ETF

The United States aims to achieve 100% carbon-free electricity generation by 2035, requiring the construction of new nuclear power plants. Nuclear energy stocks and ETFs have been strong performers in 2023, with gains of up to 60%. In North America, the well-known nuclear stock Cameco has surged by 94% year-to-date.

Nuclear-Focused Stocks Rally As World Leaders Pledge To Expand Generation Capacity

Demand for new infrastructure makes the utility sector capital intensive. At the same time, the sector is also facing a higher cost of capital.

After Reaching a 3-Year Low, This High-Yield ETF Is Up 12.8%. Here's Why It's a Buy Now.

Cooling inflation triggered the possibility of a less-hawkish Fed, going forward.

5 Sector ETFs to Tap in Falling Rate Environment

The S&P 500 NYSEARCA: SPY is expected to post earnings growth for Q4 2023, but that is about the best that can be said. The consensus is for growth, but the bottom has fallen out of the outlook and can be expected to worsen before it gets better.

Utilities may be the best play for a turbulent holiday quarter

Tricon Residential

REITs are priced as if they were facing an existential crisis. But the reality paints a very different picture. We think that this is a once-in-a-decade opportunity, and we highlight some of our Top REIT Picks.

There May Not Be Another Chance Like This For REITs In A Decade

Eversource Energy

Exactly what you'd think: utilities stocks, which are tried-and-true dividend payers, are trending higher. The Utilities Select Sector SPDR Fund NYSEARCA: XLU is up 4.72% in the past week.

Dependable dividends: Why utility stocks are on fire

Utilities sector is no longer boring, predictable, or safe due to climate change and energy transition. Utility stocks still have room for a price correction to meet risk-free rates. XLU ETF portfolio is trading at a high P/E ratio and has escalating debt risks, making it a sell recommendation.

News for Utilities Select Sector SPDR Fund ETF (XLU)