Tuesday, May 14, 2019

S&P 500 utility stocks lack power as Treasury alternative

Investors seeking a haven in U.S. utility stocks stand to gain relatively little by comparison with going into Treasury securities. The gap between the S&P 500 Utilities Index’s dividend yield and the 10-year Treasury note yield stood at 0.84 percentage point as of Monday, according to data compiled by Bloomberg. That’s well below the average spread of 1.37 points since the S&P 500 Index entered a bull market in March 2009. To be sure, the gap shrank to less than 0.1 point last November, when it reached the lowest level since 2008.

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