Utility stocks have long been a favorite for investors who are looking for stability and consistent returns in the current market. These companies provide essential services, and since these services are always in demand, utility stocks have underlying businesses with predictable earnings. Many of them also pay dividends, and it complements the capital appreciation as investors pile in during volatile periods.
Right now, trade tensions loom large, and while Trump has suggested that tariffs on China might de-escalate, the White House said this won’t be done without negotiations with China. There are no timelines.
Even if you’re bullish on the broader economy, utility stocks are hard to ignore. They are facing minimal disruption from supply chain chaos or tariff hikes. Their operations are mostly domestic, so they sidestep any tariffs. It’s a good idea to keep a few of them in your portfolio to add more ballast.
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