Playing Defense With Dividends: Utility Stocks Yielding Over 5.0%

Protecting the Quarterback Let's be honest, there is nothing sexy about utility stocks. They don't need the spotlight or the glory. But when they get called upon, they step in and do their job ... no questions asked. They are humble and reliable. In a way, utility stocks are like offensive linemen in football. The O-linemen rarely make the headlines or box scores, yet they are arguably the most important players on the field when the game is on the line. What could be more important than protecting the quarterback? The Unsung Heros of Your Portfolio The S&P Select Utility SPDR (XLU) has been up 18 of the past 23 trading sessions and has outperformed the S&P 500 Index (SPY) by 6.54% over this time period (see price ratio chart below). Historically, when defensive stocks lead the market higher, there is a high probability that a market (and/or economic) downturn... Read more