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Current DateTime: 04:44:06 22 Nov 2009
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Current DateTime: 04:44:06 22 Nov 2009
LinksList Documentid: 30111251
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The Utilities Sector  continued its advance yesterday, gaining over 1% while the Dow [.DJIA  Loading...      ()   ] and S&P [.SPX  Loading...      ()   ] fell for the third day in a row.  The sector has been on a run since hitting a low in early March and has been one of best performing sectors in the past three months.  Since its March low, the S&P Utilities Sector is up nearly 10%. 

Utilities are often seen as a defensive play, with steady cash flows and solid dividends.  What is impressive is the fact that this seems to be holding true even with record fossil fuel prices.  Rising commodity prices increase the cost of producing electricity and regulated pricing on the transmission and distribution end make it hard (or at least slower) to pass the cost increases onto end customers.  Interestingly, it is not the Nuclear leaders (a cheaper alternative to fossil) like Exelon [EXC  Loading...      ()   ] and Entergy [ETR  Loading...      ()   ] that have had the biggest gains.

Yesterday's jump was partly driven by the recent slide in crude prices.  AES Corp [AES  Loading...      ()   ] jumped 3.3% followed by PSEG [PEG  Loading...      ()   ] up 2.9% and Constellation Energy [CEG  Loading...      ()   ] up 2.7%.

Here are the biggest gainers in the S&P Utilities Sector over the past three months:

  • TECO Energy [TE  Loading...      ()   ] is up 30.6% and boosted its dividend in April
  • Nicor [GAS  Loading...      ()   ] is up 24.9% and has 4.5% dividend yield
  • CenterPoint Energy [CNP  Loading...      ()   ] is up 18.9% and has a 4.4% dividend yield.
  • AES [AES  Loading...      ()   ] is up 18.1% in the past 3 months
  • Dynegy [DYN  Loading...      ()   ] is up 16.6% in the past 3 months

bythenumbers.cnbc.com

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Current DateTime: 02:35:20 22 Nov 2009
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