Top 5 Utility Stocks Set to Gain on Possible Interest Rate Cuts

Core Viewpoint - The utilities sector is expected to benefit from anticipated interest rate cuts, with a focus on five selected utility stocks that show positive earnings growth potential and stable revenue growth [1][2][6]. Utilities Sector Overview - The utilities sector is typically defensive, but it has surprisingly become a strong performer in 2024, rallying 21.7% year-to-date, contrasting with a decline of over 11% in 2023 [3][5]. - Utilities are capital-intensive and rely on consistent investments for infrastructure upgrades, making them sensitive to changes in interest rates [1][5]. Selected Utility Stocks - NiSource Inc. (NI): Plans to invest $16.4 billion through 2028 for infrastructure modernization, with a projected EPS growth of 6.8% and revenue growth of 12.1% for the next year. Current dividend yield is 3.2% [7][8]. - American Water Works Co. Inc. (AWK): Benefits from acquired assets and military contracts, with projected EPS growth of 8% and revenue growth of 3.1%. Current dividend yield is 2.1% [9][10]. - Xcel Energy Inc. (XEL): Focused on reducing coal usage and achieving carbon neutrality by 2050, with projected EPS growth of 8% and revenue growth of 6.2%. Current dividend yield is 3.5% [11][12]. - Evergy Inc. (EVRG): Expanding operations in the transmission market and aiming for carbon neutrality by 2045, with projected EPS growth of 4.9% and revenue growth of 2%. Current dividend yield is 4.3% [13][14]. - DTE Energy Co. (DTE): Plans to invest $20 billion from 2024 to 2028, promoting clean energy and targeting zero-carbon emissions by 2050, with projected EPS growth of 7.3% and revenue growth of 4.3%. Current dividend yield is 3.3% [15][16].