Utilities Sector

What is the 'Utilities Sector'

The utilities sector is a category of stocks for utilities such as gas and power. The utilities sector contains companies such as electric, gas and water firms and integrated providers.

BREAKING DOWN 'Utilities Sector'

Because utilities require significant infrastructure, these firms often carry large amounts of debt. With a high debt load, utilities companies become sensitive to changes in the interest rate. As interest rates rise or drop, the debt payments will increase or decrease. The utilities sector performs best when interest rates are falling or remain low.

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RELATED FAQS
  1. What is the average annual dividend yield of companies in the utilities sector?

    Learn about the average annual dividend yield of companies in the utilities sector and the overall suitability of the sector ... Read Answer >>
  2. How many different types of utility stocks are there?

    Learn more about utility stocks and about some of the differences between different kinds of utility companies, including ... Read Answer >>
  3. What kind of investors buy utility stocks?

    Take a look at why income investors like utilities, why value investors might like utilities and why growth investors tend ... Read Answer >>
  4. To what extent are utility stocks affected by changes in interest rates?

    Explore the current state of the utilities sector, and learn about the different ways an increase in interest rates may impact ... Read Answer >>
  5. What is the long-term outlook of the utilities sector?

    Discover the long-term outlook for the utilities sector, along with the various aspects that make utility stocks appealing ... Read Answer >>
  6. Why have utility stocks become more volatile investments than they were historically?

    Examine the current state of the utilities sector, and learn why analysts are forecasting uncharacteristic levels of volatility ... Read Answer >>
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