Although utilities companies are very expensive on many metrics compared to the broader market, they offer attractive dividend yields and are more predictable buys for investors because of their regulated business models, one managing director said.

"Those dividend yields just look very attractive and remember the business models are much more predictable because most of them are regulated and so the dividends and prospective growth in those dividends is seen as much more  achievable and, therefore, there's a lower risk profile with that," said Greg Gordon, senior managing director and head of utilities research at ISI.