The utility sector is a favorite among investors looking for steady dividend income. The sector is considered recession proof given that electricity is an essential commodity and people do not cut electricity consumption even in the fiercest of recessions. Owing to this, the companies in the sector generate steady cash flows, allowing them to maintain healthy dividend payouts. Our latest pick for our Best Sector Dividend Stocks Model Portfolio fits the above description perfectly.
Our pick is a leading utility player with a presence in Kansas and Missouri. The company operates under a fully regulated retail utility model, which prevents any significant competition. This utility model allows it to generate and grow earnings sustainably, offering it a strong competitive advantage.
There is growth as well. Our pick expects high single-digit EPS growth buoyed by investments in renewable energy, rate base growth, and operational savings. With a 3.5% dividend yield, our pick makes an ideal selection for risk-averse income-seeking investors and it can be grabbed before it goes ex-dividend on Tuesday, June 7 (estimated date).
You can check out the Best Utility Dividend Stocks List to explore all the stocks.
