Best-Performing S&P Sector This Year: Utilities

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March 28 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at the performance of the utility sector on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

Best this year is probably the group you at least suspect.

Cap for a little insight and action.

You ready for this one?

Surprise, it is utilities.

Who would have thought that utilities would be the best performing sector in the s&p 500 this year?

As the fed talks about even raising rates eventually, they should hurt utilities.

Yet utilities are up 7.7%. health care, the best group last year, only up 4%. poor tech -- supposed to lead us out, right?

Discretionary is the worst.

This is a 2-year chart.

Very consistent in the sub trend . every time we get to the lower level these bounce back up.

The point is, it is an up trend.

Very consistent performance from the utilities.

Dig a little bit deeper and -- come on, here we go -- what is actually behind this thing?

This is where it gets interesting.

This is why you buy utilities, because they pay dividends.

Ok, fine, that is the easy part.

Look at this come earnings growth, 8%. are you kidding me?

No, i am not.

That is the number.

You have dividends, and boring old utilities, right?

Electrical providers that are growing faster than the s&p 500 and paying a higher dividend now it starts to make sense.

If you want to go with the top three, bingo.

Pepco -- 4.5% dividend yield.

You have got pacific gas & electric company -- again, the etf, or there are your top three, but utilities, amazing, right?

Higher dividend and earnings growth, lisa this year, on the s&p 500. we want to quickly highlight that couple of big movers in

This text has been automatically generated. It may not be 100% accurate.


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