Utilities Pull Ahead

While the rest of the market is taking a breather from the extended rally, utilities are pulling ahead. Utilities have been the best performing sector over the past 4 weeks with the Utilities Select Sector SPDR Fund (XLU) up nearly 9% compared to 4% for the broader market.

dividend yield

Dividend Yields Hit 12 Year High

Last week’s market correction has lowered stock prices to the point where dividend yields are now at their highest levels in 12 years. Leading S&P 500 components such as Pfizer (PFE), AT&T (T), Dow Chemical (DOW), Nucor (NUE), and Duke Energy (DUK) all ended the week with forward looking dividend yields of over 6.5% and well above their 5 year averages.