These low - growth and above - average dividend yield characteristics have led me to only
invest in utility stocks when two important conditions are met.
# 4 Don't buy utilities: In the past couple of years investors seeking high dividends may have invested
in utility stocks in the past year but this year they might be hard struck.
Utilities tend to have similar convexity
profiles in that utility stocks trade higher when interest rates go lower, and lower when interest rates go higher.
Trading at $ 40.57 at the time of writing, Emera's shares are down 14 % this year, hurt by the general
weakness in utility stocks, as rising interest rates in North America diminish the appeal of energy infrastructure stocks.
Nearly a quarter of the ETF is
in utility stocks, for example.