Utilities operate very boring businesses. They distribute electricity and natural gas to customers under government-regulated rate structures. There isn’t a lot of upside in this business (demand and rates are relatively steady), but there is also not much downside. Because of that, utilities generate pretty stable returns, a large portion of which comes from their high-yielding dividend payments.
Investors seeking to add more stability to their portfolio should consider buying a boring utility stock. Black Hills (NYSE: BKH), Consolidated Edison (NYSE: ED), and Duke Energy (NYSE: DUK) stand out to a few Fool.com contributors as great options for those seeking a high-yielding and sustainable dividend.
Black Hills is the mouse that roared
Reuben Gregg Brewer (Black Hills): When it comes to utility stocks, Black Hills, with a $3.9 billion market cap, is one that often slips under the…
