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 are the top investing strategies for investing in the utility sector?

    Employ the right strategies when investing in the utility sector, and you can see consistent returns with less risk than ... Read Answer >>
  2. What is a utility stock?

    Investing in difficult economic conditions requires knowledge of different stock classes. Utility stocks are one vehicle ... Read Answer >>
  3. What is the average annual return in the utilities sector?

    Explore facts about the popular utilities sector and discover what the average annual return for the sector has been over ... Read Answer >>
  4. What are the main factors that drive share prices in the utilities sector?

    Learn why the share prices of companies in the utility sector have sensitivity to interest rates and to changes in the amount ... Read Answer >>
  5. 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 >>
  6. 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 >>
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