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.
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.