In 2008, while the S&P; 500 was down 38.49%, utilities dropped 31.55%. Usually utilities hold up well in a bear market as they are considered defensive plays. However in current times utilities are also getting killed since they have high capital expenditures, engage in energy trading activities, etc. So in a way they are defensive as they were in the past. However unlike banks and other sectors utilities are a necessity that people have to depend on for everyday life. We could say that next to consumer staples like food, utilities are the next important item that consumers pay their bills. Hence utility stocks are an integral part of a well-diversified portfolio.

The following table lists all the foreign utilities traded in the US organized exchanges together with the current dividend yield and prices:

Note: All data is as of market close Jan 5,2009.

An investor looking to get some exposure to foreign utility stocks can use the above table as a starting point to do further research. Emerging market companies like CIG, CPL, MGS, etc. may pay high dividends but they are not consistent and the stocks themselves maybe volatile as well. Only a developed markets utility stocks trade in the US. In a future post we shall explore those stocks that are traded in the OTC exchanges.