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NEE, DUK, SO, and D: Utility Giants’ Dividend Profiles

Vincent Kruger
NEE, DUK, SO, and D: Utility Giants’ Dividend Profiles

Utilities generally offer superior dividend yields compared to broader markets. Currently, utilities (XLU) yield ~3.5%, which is a yield premium of ~170 basis points over broader markets and just 20–30 basis points over ten-year Treasury yields. The yield premium to benchmark Treasury yields fell from ~150–200 basis points early this year. The recent strength in Treasury yields could be negative for utilities.