Energy Companies Offer Even Higher Dividend Yields Than Utilities Companies

Energy Companies Offer Even Higher Dividend Yields Than Utilities Companies
Stéphane Renevier, CFA

about 3 years ago1 min

  • Utilities companies are well-known for paying high and regular dividends, thanks to the stability of their businesses (people need heat and electricity regardless of how the economy is doing).
  • But this chart – which compares the dividend yields from energy companies (XLE) to utilities firms (XLU) – shows energy companies are now offering a much higher dividend yield than utilities.
  • On average, energy companies have a 6.5% higher dividend yield than utilities companies: their total dividend yield is almost 10%.
  • Why should I care? The XLE ETF might be attractive: energy stocks should benefit from an economic recovery or provide an income boost if not.
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