Utility stocks are on sale; here are Morningstar’s top 3 picks

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The sector has faced hard times in the market, with the S&P 500 utilities index returning negative 20% year to date.

Utility stocks have hit the skids, with the S&P 500 utilities index returning negative 20% year to date through Thursday.

He offered his top three choices for utility stocks – “utilities that we think can grow earnings and dividends faster and for longer than their current market valuations imply.” “Above-average electricity-demand growth, clean-energy investments, and reliability/resiliency network investments are core growth drivers” for the company, he said.Morningstar moat rating: narrow. Morningstar fair value estimate: $33. Friday price quote: $24.05. Forward dividend yield: 3.69%.

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