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.

Brookfield Renewable Partners

Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure

Enbridge

Realty Income Corp

iShares 0-3 Month Treasury Bond ETF

Vanguard Real Estate ETF

Dividend stocks are traditionally viewed as more conservative investments due to the stability of income, historical performance, and risk mitigation attributes. Dividend stocks provide a steady stream of income through dividends, acting as a cushion during market downturns. However, Mr. Market is now sending a stern warning to dividend investors.

An Important Warning To Dividend Investors From Mr. Market

Rising interest rates have put pressure on the Utility sector, causing most industry stocks to decline. However, valuations have now gotten to the point where we're starting to get interested in these high-income, hard asset plays. The biggest holdings of the Utilities Select Sector SPDR Fund ETF are NextEra Energy, Southern Co, Duke Energy, and Sempra.

XLU: A Dependable Yield Backed By Hard Assets

Apple

Alerian MLP ETF

Amazon

Atlantica Sustainable Infrastructure

Crown Castle International

Energy Transfer LP Unit

iShares Russell 2000 ETF

Microsoft

NVIDIA

Invesco QQQ

SPDR S&P 500 ETF Trust

Tesla

Vanguard S&P 500 ETF

Leading market valuation metrics indicate that the stock market is overvalued right now. Peter Lynch, however, believes that there are abundant bargains in the current stock market. We share where he thinks the bargains are to be found and what our top picks are.

Peter Lynch Says This Is Where The Bargains Are Right Now

Agree Realty

Alexandria Real Estate Equities

Innovative Industrial Properties

Gladstone Land

Rexford Industrial Realty

The market appears to be treating all REITs the same: as debt-burdened alternatives to fixed income. But there is a wide world of diversity across the landscape of REITs, including on the balance sheet side. I highlight five REITs with balance sheets that are well-positioned to withstand high interest rates with almost no floating rate exposure or upcoming debt maturities.

5 REITs With No Near-Term Debt Maturities And Virtually No Floating Rate Debt

Citigroup

Alphabet

Johnson & Johnson

Coca-Cola

Procter & Gamble

UnitedHealth Group

Vanguard Consumer Staples ETF

Technology Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

Bond yields are showing signs that they have peaked. If they keep dropping, it would make a host of stocks look attractive including Duke Energy, Coca-Cola, Procter & Gamble, and Johnson & Johnson.

The Bond Sell-Off Might Be Over. Buy These Stocks to Win.

Brookfield Asset Management

Brookfield Corp

Schwab US Dividend Equity ETF

Dividend growth stocks, particularly REITs and utilities, have been slumping due to rising long-term interest rates. The richest man in American history was a big believer in the power of dividends. We share three once-in-a-decade opportunities to buy elite high-yielding dividend growth stocks at compelling discounts.

3 Dividend Stocks The Richest Man In American History Might Have Loved

iShares Core U.S. Aggregate Bond ETF

SPDR Bloomberg 1-3 Month T-Bill ETF

iShares Trust iShares 1-5 Year Investment Grade Corporate Bond ETF

iShares Russell Top 200 Growth ETF

iShares MBS ETF

During LSEG Lipper's fund-flows week that ended October 18, 2023, investors were overall net sellers of fund assets for the fourth week in five, removing a net $106.3 billion. Exchange-traded equity funds recorded $2.2 billion in weekly net inflows, the third straight week of attracting new capital.

U.S. Weekly FundFlows Insight Report: Largest Weekly Outflow Since June 11, 2008 - Led By Money Market Funds (-$97.5 Billion)

Vanguard Total Bond Market ETF

Chevron

Enterprise Products Partners

Energy Select Sector SPDR Fund

Exxon Mobil

Rising long-term interest rates, unrest in the Middle East, and fears of an economic downturn are leading concerns for investors right now. We share what sector we believe is the best possible investment in the current environment.

Well-Covered 7-10% Yields To Hide From Rising Rates, Unrest, And Recession

iShares U.S. Insurance ETF

Consumer Staples Select Sector SPDR Fund

Rising rate worries have been prevalent in the United States as the U.S. economy is recovering steadily and the inflation remains sticky.

Sector ETFs to Win/Lose Amid Surging Treasury Yields

Ares Capital

VanEck Vectors BDC Income ETF

Blackstone Secured Lending Fund

FS KKR Capital Corp

Main Street Capital

Global X MLP & Energy Infrastructure ETF

Blue Owl Capital Corp

Business Development Companies enjoy tax advantages and pay out big dividend yields. We take a look at the five biggest BDCs.

Passive Income: 7-13% Well-Covered Yields From The 5 Biggest BDCs

Subscribers to  Chart of the Week  received this commentary on Sunday, October 8.

What XLU Options Traders Can Tell Us About Red-Hot Bond Yields

SPDR Dow Jones Industrial Average ETF

Direxion Daily Energy Bear 2X Shares

Proshares Short 20+ Year Treasury

iShares 20+ Year Treasury Bond ETF

The bond market and interest rates were the biggest news items of the week. The absolute level of the 10-year bond rate is causing havoc in various sectors, such as housing and commercial real estate.

Rate Watching And Why The Bond Market Matters

Utilities stocks have dropped into unusual territory, after being “decimated” by rising interest rates, according to Bespoke Investment Group.

Utilities stocks ‘decimated' by rising rates fall into uncommon trading territory, Bespoke chart shows

The S&P 500 utilities sector XX:SP500.55 declined by 5.6% on Monday afternoon, reaching its lowest level since June 2020 in the final hour of trading as Treasury yields resumed their climb after the U.S. government averted a weekend shutdown.

Utilities stocks are on pace for worst day since 2020 as Treasury yields resume climb

Blackrock Inc

iShares U.S. Treasury Bond ETF

Tricon Residential

W. P. Carey

The U.S. government appears headed for a shutdown. I look at four ways that this could disrupt the REIT sector. I also share my approach to REITs right now and share my top picks.

How The U.S. Government Shutdown Could Impact REITs

The XLU ETF is a utility-sector focused ETF. After massively outperforming in 2022, XLU has been an underperformer in 2023 as investors rotated out of safe haven assets. Looking forward, utility valuations have gone from a 3x Fwd P/E premium to the market to a 2x discount.

XLU: Upgrade To Buy On Relative Valuations

Real Estate Select Sector SPDR Fund

The two worst performing S&P 500 sectors during the third quarter were utilities and real estate investment trusts, as a jump in Treasury yields made those high-yielding sectors less attractive despite their usual safe-haven status. The Utilities Select Sector SPDR XLU, -0.20% dropped 10.3% since the end of June and the Real Estate Select Sector SPDR ETF XLRE, +0.09% sank 9.9%, while the S&P 500 SPX, -0.45% shed 3.9%.

The 2 highest yielding S&P 500 sector ETFs are Q3's worst performers

Are we in the credit event I argued would likely hit towards the end of the year? I believe so, yes.

What the Hell Happened to Utility Stocks?

Vanguard Utilities ETF

Changing regulations and lawsuits make individual utilities a tougher investment than they used to be. Owning shares of a sector-based investment can reduce the impact that any one company will have on your overall portfolio.

You Don't Have to Pick a Winner in Utilities. Here's Why.

The problem isn't the outlook for earnings at utilities and makers of consumer staples. Higher yields on Treasury debt are hurting the shares.

'Defensive' Stocks Are Getting Crushed in a Falling Market. Why It's Time to Buy.

SPDR Gold Trust

For a conservative investor seeking exposure to the equity markets while prioritizing stability and long-term wealth preservation, investing in Exchange-Traded Funds (ETFs) or indices can be an attractive strategy and might make the most sense.

3 ETFs for the Conservative Investor to Buy and Hold

Extra Space Storage

iShares U.S. Real Estate ETF

Public Storage

REITs have dropped by about 30% since early 2022, much more than other defensive, debt-utilizing sectors like utilities and consumer staples. Interest rates are unlikely to increase significantly further from here, while REIT fundamentals remain strong, aside from the notable exception of office buildings. I highlight 6 of my favorite blue-chip REITs with investment-grade credit ratings, low-leveraged balance sheets, and strong long-term growth prospects.

REIT Crash: The More They Drop, The More I Buy

Consolidated Water

FirstEnergy

Based on seasonality studies, the stock market is entering the weakest period of the year. The second half of September through the first week of October has historically been a particularly challenging period to own stocks.

Smart Money Rotations: 3 Top Ranked Utilities Stocks to get Defensive

Utilities are less correlated to the broader economy than most stocks. Many of the top utility stocks are inexpensive and pay strong dividends.

Worried About a Stock Market Sell-Off? Consider This Ultra-Safe High-Yield ETF

Utility stocks are often considered a hedge against recession-related risks due to their non-cyclical nature and virtually guaranteed profits. However, utility companies are facing significant risks, such as supply-side issues, infrastructure inadequacies, and an aging workforce. Utilities may be the most overvalued sector, trading at a significant premium to bonds that suggests over 20% in downside is needed to normalize its dividend spread to Treasuries.

XLU: Utilities May Be The Best Undercover Short Opportunity Today

News for Utilities Select Sector SPDR Fund ETF (XLU)