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If long-term Treasury yields keep rising, dividend-seeking investors in utilities (XLU -1.4%)...

If long-term Treasury yields keep rising, dividend-seeking investors in utilities (XLU -1.4%) will wonder how the lights went out for the sector, 24/7's Jon Ogg writes. The risk isn't only that investors may go elsewhere for yield; utilities have high operating costs and they borrow heavily to pay for infrastructure investments. Today's analyst downgrades only magnify what investors have to fear.
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Comments (5)
  • al roman
    , contributor
    Comments (8764) | Send Message
     
    Seems so for now.
    28 May 2013, 03:56 PM Reply Like
  • InvestoBullSG
    , contributor
    Comments (178) | Send Message
     
    Those high operating costs will likely pass to the consumers just like any new upcoming taxes.
    28 May 2013, 07:39 PM Reply Like
  • Rummeljordan
    , contributor
    Comments (477) | Send Message
     
    One day and people are freaking out! Common, who knows if this is the begging, utilities have had a good run.
    28 May 2013, 08:20 PM Reply Like
  • al roman
    , contributor
    Comments (8764) | Send Message
     
    Last Rites ? Reminds me of Gold a few weeks back.
    28 May 2013, 09:24 PM Reply Like
  • User 353732
    , contributor
    Comments (4966) | Send Message
     
    Utilities in the South, Southeast and Rocky Mountains have the potential for increased earnings power, cash flow and hence dividend growth.
    In states where there is growth in real jobs and population because of growth in the Productive Economy utilities are very well positioned to benefit.
    It is in Bicoastal US and the Midwest that utilities are vulnerable especially as the great demographic shift from north to south resumes are people are able to sell their homes.
    29 May 2013, 05:44 AM Reply Like
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