Rising Treasury Yields Drag Down Utility Stocks as Investors Seek Higher Income

Utility stocks like Duke Energy, Dominion Energy, and NextEra Energy fell significantly as yields on 10-year Treasuries rose.
Treasuries are seen as very safe investments, so when their yields rise, they can draw investors away from utilities.
Utilities have stable, predictable cash flows that support steady dividends, which investors like.
But those dividend yields look less attractive compared to rising yields on Treasuries.
Utility stocks remain fairly stable businesses, but may need to raise dividends to compete with Treasuries for income investors.

fool.com

Relevant topic timeline:

10/3/2023

Rising Rates Slam Utility Stocks as Sector Sees Worst Drop Since 2020

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