Utilities Sector

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DEFINITION of 'Utilities Sector'

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.

INVESTOPEDIA EXPLAINS '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. How does weather impact the share prices of utility stocks?

    The utilities sector is a popular addition to an investor’s asset allocation due to the industry’s above average dividend ... Read Full Answer >>
  2. What ETFs should I buy to track the utilities sector?

    The utilities sector has long been a space for investors looking for dividend-paying investments, especially in a lower interest ... Read Full Answer >>
  3. Are there leveraged ETFs that track the utility sector?

    A couple of leveraged exchange-traded funds, or ETFs , track the utilities sector. One is the ProShares Ultra Utilities (UPW). ... Read Full Answer >>
  4. What is a utility stock?

    A utility stock is a stock for a company that is found in the Utilities Sector. These companies include water, gas, electric ... Read Full Answer >>
  5. Are monopolies always bad?

    Monopolies over a particular commodity, market or aspect of production are considered good or economically advisable in cases ... Read Full Answer >>
  6. What utility stocks pay the highest dividends?

    The utilities sector traditionally offers a high dividend payout. Dividends, which may come in the form of additional stock ... Read Full Answer >>
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