Investors Avoid Utility Stocks in 2023

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Most investment portfolios held utility stocks. They have always been one of the most reliable sectors of the stock market. Historically, utilities stocks have been a low risk with high yield. But that has changed.

Unlike growth stocks, many investors hold utilities to collect dividends. But these once-healthy dividends have dried up. Why did this happen? And how risky are utility stocks in 2023?

Utilities Traditionally Stable

Many investors who want lower-risk investments typically turn to utility stocks. Electricity is a modern necessity that people can’t do without. Consumers may cut back on other goods, but they’re going to turn the lights on and heat their homes regardless of the economy.