3 High-Yield Stocks to Buy in This Boring Sector

Group 1: Utility Industry Overview - Utilities operate under government-regulated rate structures, providing stable returns with high-yielding dividend payments [1] - The sector is characterized by steady demand and limited downside risk, making utility stocks attractive for income-focused investors [1] Group 2: Black Hills Corporation - Black Hills has a market cap of $3.9 billion and is recognized as a Dividend King with 54 consecutive years of annual dividend increases [3] - The average dividend increase over the past three, five, and ten years is around 5%, with a current yield of approximately 4.5% [3][4] - Customer growth for Black Hills is nearly three times the rate of U.S. population growth, indicating potential for future rate adjustments by regulators [5] Group 3: Consolidated Edison - Consolidated Edison serves the New York City metro area and has achieved its 50th consecutive annual dividend increase, making it a Dividend King [8] - The current dividend yield is less than 3.5%, which is more than double the S&P 500's yield of around 1.3% [8] - The company plans to target a dividend payout ratio of 55%-65% of adjusted earnings to fund investments in clean energy, down from a previous target of 60%-70% [9][10] Group 4: Duke Energy - Duke Energy is one of the largest regulated utilities in the U.S., focusing on growing markets like Florida and the Carolinas [11] - The company sold its unregulated commercial renewable energy business for $2.8 billion and plans to use proceeds to reduce debt [11] - Duke Energy aims for net-zero carbon emissions by 2050, with a five-year capital investment plan of $73 billion to enhance its energy infrastructure [12] - Expected adjusted earnings per share growth is 5% to 7% through 2028, with a current dividend yield of 4% [13]