Looking at the utilities profit outlook, Capital IQ estimates that the sector could post earnings growth of 0.9% for the third quarter and 1.7% for all of 2015.
In contrast, the S&P 500 is expected to see earnings decline of 4.5% for Q3, which was downwardly revised since the start of the third quarter, according to FactSet data, as energy and multinational sectors weighed on the broader index. Those data points underscore the predictable though often slow-growth profit outlooks seen in the utilities sector.
“The average utility dividend yield has risen to 4.02 percent from 3.96 percent on Sept. 16, another sign that investors expect a rate increase. It had dropped to 3.68 percent on Oct. 22 after the Fed left its target rate at zero percent to 0.25 percent,” according to Bloomberg.
Utilities Select Sector SPDR
