Published on 27 Jul 2022 on InvestorPlace via Yahoo Finance

The 7 Best Utility Stocks to Buy Now

The best utility stocks offer excellent defensive plays in riding out today’s volatile markets. The demand for utility services remains relatively insulated from broad market downturns. As a result utility shares can add stability to portfolios due to lower-risk business models and stable cash flows that are less susceptible to market fluctuations.

The Bureau of Labor Statistics recently reported that the consumer price index (CPI) saw an annual increase of 9.1% in June, the highest rate in four decades. As the cost of energy increases, utilities stocks may serve as a defensive hedge against inflation as they pass along rising energy costs to consumers. Additionally, their stable dividends also attract income investors to utility stocks, especially in today’s inflationary market.

Utility stocks have shown significant resilience amid today’s volatile stock market. The Utilities Select Sector SPDR Fund (NYSEARCA:XLU) is down only 2.4% year-to-date (YTD), an impressive performance given that the S&P 500 index is currently down by more than 18% so far in 2022.