Mar. 13 at 7:33 PM
Utility stocks are drawing investor interest as defensive plays amid geopolitical tensions and market volatility. The Utilities Select Sector SPDR ETF has gained about 10% in 2026, outperforming the S&P 500, which is down roughly 2%.
The sector benefits not only from stable dividends but also from rising electricity demand linked to AI data centers, with power demand expected to grow 2%–3% annually.
Among utilities combining dividend yields above 3% with solid earnings growth prospects are Public Service Enterprise Group, FirstEnergy, American Electric Power, and Consolidated Edison, which analysts expect could deliver total returns near or above 10% in 2026.
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