Market Overview - The S&P 500 index has reached a new all-time high, with the SPDR S&P 500 ETF Trust (SPY) up 5.3% in 2025 after hitting a 52-week low in April [1] - Technology stocks have driven the recent market rally, but utility stocks have also shown impressive gains, with the Utilities Select Sector SPDR Fund (XLU) up more than 7.7% this year [1] Utility Sector Insights - Utilities may not keep pace with technology stocks in a risk-on environment, but they offer steady income and lower volatility, appealing to certain investors [2] - NextEra Energy (NEE) has a strong business model with its regulated utility and renewable energy segments, despite facing potential cuts to renewable energy subsidies [3][4] - NextEra Energy's stock is projected to increase by 17%, with a current dividend yield of 3.16% [5] Company Profiles NextEra Energy - NextEra Energy serves over five million customers in Florida and is a major player in renewable energy generation [3][4] - The company is well-positioned to benefit from the growing electricity demand for AI data centers [5] American Electric Power (AEP) - AEP operates across 11 states, serving over 5.6 million customers, with 90% of its revenue from regulated operations, contributing to its stability [6][7] - AEP's stock has increased by 12.7% in 2025, with projected earnings growth of around 7% in the next 12 months and a dividend yield of 3.58% [9] Dominion Energy - Dominion Energy has undergone a transformation, with 90% of its revenue now from regulated utility operations, leading to a stock increase of 19.5% in the last 12 months [10][11] - The company has a refreshed dividend yield of 4.67% and is projected to have earnings growth of around 6% in the next 12 months [12]