U.S. Utility Sector Has The Lowest Exposure To Foreign Revenues

Utility stocks have long been the favorites of income seeking investors. As monopolies in the markets they operate utilities offer stable growth and excellent dividends. In terms of adverse market conditions these stocks can offer stability and downward protection to a well-diversified portfolio.

Another advantage of holding utilities is that they have the lowest foreign revenue exposure. Hence this sector will not be too much impacted by volatility in emerging and other developed markets. The chart below shows the foreign-revenue exposure of S&P 500 sectors:

Click to enlarge

Source: GLOBAL EQUITY OUTLOOK – Spring 2017, Janus Henderson

As shown above, the tech sector is the most exposed to foreign markets while utilities have the lowest foreign revenue exposure.

The Dow Jones Utility Index is up by 7.17% year-to-date excluding dividends. This is slightly lower than the 8.24% price return for the S&P 500. Investors looking to gain exposure to the utility sector have plenty of options on the US market. Ten utilities are listed below with their current dividend yield for further research:

1.Company: Duke Energy Corporation (DUK)
Current Dividend Yield: 4.09%

2.Company: NextEra Energy Inc (NEE)
Current Dividend Yield: 2.80%

3.Company: Dominion Resources, Inc. (D)
Current Dividend Yield: 3.94%

4.Company: Southern Company (SO)
Current Dividend Yield: 4.85%

5.Company: Exelon Corporation (EXC)
Current Dividend Yield: 3.63%

6.Company: American Electric Power Co. (AEP)
Current Dividend Yield: 3.40%

7.Company: PG&E Corporation (PCG)
Current Dividend Yield: 3.19%

8.Company: PPL Corporation (PPL)
Current Dividend Yield: 4.09%

9.Company: Public Service Enterprise Group Inc. (PEG)
Current Dividend Yield: 4.00%

10.Company: Edison International (EIX)
Current Dividend Yield: 2.78%

Note: Dividend yields noted above are as of June 30, 2017. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long NEE

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