{"id":517394,"date":"2023-12-28T12:29:34","date_gmt":"2023-12-28T12:29:34","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=517394"},"modified":"2026-02-09T14:33:03","modified_gmt":"2026-02-09T14:33:03","slug":"utilities-stocks","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/utilities-stocks","title":{"rendered":"Best utilities stocks"},"content":{"rendered":"

Utility stocks may not be a glamorous investment, but they can provide steady returns, especially when the markets are turbulent. <\/p>

History has shown that utility stocks tend to outperform when the economy is going through a downturn, so they can be a good way to protect your portfolio against a recession. But they can also underperform when the economy is growing.<\/p>

What are the best utilities stocks?<\/h3>

The best utility stocks for you will depend on the level of risk you\u2019re prepared to take on and what else you\u2019re invested in. It\u2019s important to weigh up the pros and cons of any investment before you buy.<\/p>

To create a list of the best utilities stocks, we\u2019ve used data from the S&P Global 1200 Utilities sector index, which many utility funds use as a benchmark.<\/p>
Stock<\/th>Icon<\/th>1 year performance (to Jan. \u201924)<\/th>5 year performance (to Jan. \u201924)<\/th>Link to invest<\/th><\/tr><\/thead>
Constellation Energy (CEG)<\/th>\"Constellation<\/td>38.30%<\/td>156.36%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
Enel SpA (ENLAY)<\/th>\"Enel<\/td>21.90%<\/td>28.46%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
Iberdrola (IBE)<\/th>\"Iberdrola<\/td>8.41%<\/td>73.52%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
National Grid (NGG)<\/a><\/th>\"National<\/td>4.04%<\/td>33.64%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
Southern (SO)<\/a><\/th>\"Southern<\/td>1.89%<\/td>53.58%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
Sempra (SRE)<\/a><\/th>\"Sempra<\/td>-0.37%<\/td>+33.19%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
Duke Energy (DUK)<\/a><\/th>\"duke<\/td>-4.62%<\/td>16.40%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
American Electric Power (AEP)<\/a><\/th>\"American<\/td>-11.08%<\/td>12.02%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
Exelon (EXC)<\/a><\/th>\"Exelon<\/td>-15.80%<\/td>10.29%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr>
NextEra Energy (NEE)<\/a><\/th>\"NextEra<\/td>-25.21%<\/td>40.68%<\/td>Invest with XTB<\/a>Capital at risk<\/td><\/tr><\/tbody><\/table>

What are utilities stocks?<\/h3>

Utility companies supply homes and businesses with electricity, gas and water. Some companies are also responsible for generating electricity, while others maintain the infrastructure, such as the sewage system or the power lines.<\/p>

One way of investing in utilities companies is by buying shares<\/a> in them \u2014 or by investing in a fund that buys utility stocks on your behalf. To be classed as a utilities stock, the company must fall within the GICS \u201cutilities\u201d sector.<\/p>

Types of utilities stocks<\/h3>

Utilities stocks tend to fit into the categories listed below, though some companies might be involved in all 3: <\/p>