After closing their worst quarter since Q1 2020 yesterday, investors seemed eager to put the past behind them, leading to an early morning uptick for the major averages.
Stocks have rallied over the last two weeks, but it was not enough to recoup January and February’s losses. For the first quarter, the Dow declined 4.6%, the S&P 500 lost 4.9%, and the Nasdaq bled more than 9%. Rounding the corner into Q2, investors are confronted with the task of seeking out quality and growth against a more challenging economic backdrop.
Today we’re turning the spotlight towards utilities – an area of the market that remains attractive, offering plenty of yield protection for investors amid persisting geopolitical turmoil and rising interest rates.
Morningstar analysts say that higher consumer spending and supply constraints driving inflation should be short-lived. “If interest rates can hit a sweet spot that tames inflation without alienating income investors, utilities are well-positioned to produce another year of 7% to 9% total returns, given attractive dividend yields and infrastructure growth,” they say.
Utility giant and prospective 2022 winner Exelon (EXC) has a market cap of $52 billion and is one of the top five publicly traded utility stocks in the U.S.
EXC touches roughly 10 million customers across the U.S. through an extensive network of power plants ranging from fossil fuel facilities to hydroelectric dams. The unmatched scale of Exelon’s reach provides a solid foundation for EXC shares. In fact, shares are up more than 52% over the past twelve months to outperform the broader S&P, which is up 13% for the same period.
EXC boasts a healthy 2.9% dividend yield backed up by a conservative payout ratio in the 65-75% range over the past five years. The stock also garners a Buy rating from the Wall Street pros offering recommendations.
Should you invest in Exelon right now?
Before you consider buying Exelon, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Exelon.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
The Truth Behind the Global Chip Shortage- do not use.
GM and Toyota factories are shutting down… Mass shortages of electronics… Medical device production nearly halted… But what you probably don’t yet realize–what few so far have figured out… Is what’s really causing it. [Full Story Here…]