Utilities Show Extreme Disdain for Dividend-Yielding U.S. Stocks
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Utilities and other stocks with relatively high dividend yields have fallen far enough out of favor this year to make them worth revisiting, according to Gina Martin Adams, an equity strategist at Wells Fargo Securities LLC.
The attached chart illustrates her point by comparing the Standard & Poor’s 500 Utilities Index to the yield on 10-year Treasury notes since the beginning of last year, a period in which they tended to track each other. The Treasury yield is inverted to highlight their relationship.