A spate of acquisitions in the utilities sector is helping energy providers fend off rising costs and falling demand, while still providing investors with steady dividend growth.
That helps to explain why the sector, often seen as a safe haven in times of trouble, was ranked No. 3 out of 33 on Wednesday.
Investors also seem undaunted by the prospect of another Federal Reserve interest rate hike, which could come as early as this month. Higher interest rates tend to boost utilities’ capital costs.