Utility Stocks Are Coming Back. 4 to Buy Out of the Wreckage.

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Singapore News News

Singapore Singapore Latest News,Singapore Singapore Headlines

High yields on government debt had made utilities' dividends less appealing, but the situation has changed.

It took a while, but utility stocks are finally starting to pop. They still look appealing even after a recent gain.

What has changed lately is that bond yields have come down. The yield on 10-year Treasury debt was at 4.59% on Tuesday afternoon, compared with nearly 5% in late October, adding to the appeal of dividend stocks. First, the 10-year Treasury yield could keep falling. At about 4.6%, the 10-year note is still yielding more than 2 percentage points above the expected average annual rate of inflation for the next 10 years. That additional yield, near the high end of the range since the 2008-2009 financial crisis, still looks appealing, which should bring in more buyers.Not only are the stocks relatively inexpensive, earnings are growing, so investors have a reason to hold them for the long term.

That would lift earnings per share by almost 10% annually from the end of this year through 2027, FactSet data indicate.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Would You Give The Utility Company Control Of Your EV?Cofounder and CEO of Bidgely, evolving energy analytics for utilities with the power of data and artificial intelligence. Read Abhay Gupta's full executive profile here.
Source: ForbesTech - 🏆 318. / 59 Read more »

Disney, Uber, Occidental, MGM Resorts, and More Stocks to Watch This WeekThird-quarter earnings from Devon Energy, D.R. Horton, eBay, Occidental Petroleum, Uber, Kellanova, MGM Resorts, Walt Disney, and Warner Bros. Discovery, and...
Source: MarketWatch - 🏆 3. / 97 Read more »

European stocks start the week slightly higherEuropean markets opened slightly higher Monday as positive momentum carried over from last week.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »