Go back 11 months and the utilities sector was not the place to be, as it was significantly underperforming most other sectors. About three-and-a-half months later came a shift, and utilities starting performing a bit better after months of mostly sideways price action. In the last couple of months, utilities has been one of the stronger performers. It shows that investors and traders are wary of an overall stock market correction, and are moving into the relative safety of utility stocks to show it. Here are four utility stocks which investors seem especially interested in right now.

Companhia de Saneamento (NYSE:SBS) is up 8.13% over the last week, after rallying aggressively off strong support in the $8.25 region. There is minor resistance between $10 and $10.25, although primary resistance is not until $11.25 to $11.50 which marks the stop of a multi-month range. Any pulls backs should find support above $8.75 (old downward trendline). If it drops below that, the former lows will likely be tested again. Aside from recent strength, another attractive feature of the stock is the 3.12% dividend yield.

Companhia de Saneamento (NYSE:SBS) is up 8.13% over the last week, after rallying aggressively off strong support in the $8.25 region.

PG&E Corp (NYSE:PCG) is up 6.16% over the last week, and is fast approaching the $45 resistance area. After forming a strong multi-month base between $39 and $40, overall the stock has been advancing higher, albeit in a choppy fashion. Since late February the stock has been in an expanding range, creating a higher-high but also a lower swing-low. Ultimately the price will need to break above this formation to indicate when the uptrend is continuing. If that occurs, the next target, and likely resistance area, is between $47 and $48. This stock also boasts a 4.09% dividend yield. 

PG&E Corp (NYSE:PCG) is up 6.16% over the last week, and is fast approaching the $45 resistance area.

Windstream Holdings (Nasdaq:WIN) is up 4.99% over the last week, and clawed its way above a couple strong resistance levels. While currently below it, $8.75 was a price level the stock struggled to surpass for a number of months (unadjusted chart). The strong rally into and above the region shows promise for Windstream being able to continue higher. There is minor resistance through to $9.17, while a rise above that provides a target of $9.75. This is still a resistance area though, so if the price falls back below about $8.15, resistance will have held and the price is likely to continue to channel between $8.75 and $7.25. Though, with an 11.59% dividend yield you may not even care what the stock price does.

Windstream Holdings (Nasdaq:WIN) is up 4.99% over the last week, and clawed its way above a couple strong resistance levels.

Wisconsin Energy (NYSE:WEC) has been in an uptrend throughout 2014, and advanced 2.29% over the last week. April 4 started out strong, but the stock ultimately finished only marginally higher, showing there is some selling pressure above $47.40. The current trendlines provides potential support near $45. If the price were to drop below that, it doesn't mean the uptrend is over, just that a deeper retracement is underway. $43 and $42 both provide additional support. The stock offers a 3.32% dividend yield.

Wisconsin Energy (NYSE:WEC) has been in an uptrend throughout 2014, and advanced 2.29% over the last week.

The Bottom Line

The recent price action in these utilities stocks shows investors are interested. With the strong run higher in the stock market overall, utilities provide some relative safety in the event of a correction. The dividend yields, ranging from 3.12% to 11.59%, contribute to that relative safety, as the dividends help offset potential capital losses. Before trading, set limits on the amount you are willing to risk and stay within those limits. 

Charts provided by Stockcharts.com

 

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.

Related Articles
  1. Chart Advisor

    ChartAdvisor for April 4 2014

    A technical summary of the major U.S. indices.
  2. Chart Advisor

    ChartAdvisor for March 27 2014

    Technical summary of the major U.S. indices.
  3. Chart Advisor

    ChartAdvisor for March 21 2014

    A technical summary of the major U.S. indices.
  4. Chart Advisor

    ChartAdvisor for March 13 2014

    Summary of the major U.S. indices.
  5. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  6. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  7. Mutual Funds & ETFs

    ETF Analysis: ProShares Large Cap Core Plus

    Learn information about the ProShares Large Cap Core Plus ETF, and explore detailed analysis of its characteristics, suitability and recommendations.
  8. Mutual Funds & ETFs

    ETF Analysis: iShares Core Growth Allocation

    Find out about the iShares Core Growth Allocation Fund, and learn detailed information about its characteristics, suitability and recommendations.
  9. Trading Strategies

    How To Buy Penny Stocks (While Avoiding Scammers)

    Penny stocks are risky business. If want to trade in them, here's how to preserve your trading capital and even score the occasional winner.
  10. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI USA Minimum Volatility

    Learn about the iShares MSCI USA Minimum Volatility exchange-traded fund, which invests in low-volatility equities traded on the U.S. stock market.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends ...
  3. Record Date

    The cut-off date established by a company in order to determine ...
  4. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  5. Dividend

    A distribution of a portion of a company's earnings, decided ...
  6. Target Payout Ratio

    A target payout ratio is a measure of what size a company's dividends ...
RELATED FAQS
  1. Do penny stocks pay dividends?

    Because of the small market capitalization and revenues typical of most penny stocks, there are very few that offer dividends. ... Read Full Answer >>
  2. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  3. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  4. How do dividend distributions affect additional paid in capital?

    Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: ... Read Full Answer >>
  5. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  6. When does the holding period on a stock dividend start?

    The holding period on a stock dividend typically begins the day after it is purchased. Understanding the holding period is ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!