By Justin McCann With the S&P Index of Electric Utility Companies down nearly 10% as of Monday's close, it's clear that electrics are much less interest-rate sensitive than in the past. Much of this reflects the impact of industry restructuring, as dividends no longer are raised as consistently as they once were. Still, with the Fed expected to reduce rates another 25 basis points, S&P finds certain high-yielding stocks attractive.
S&P has a 5 STARS (buy) recommendation on TXU Corp. (TXU), which is yielding 5.2%.
S&P also has a 4 STARS (accumulate) ranking on Xcel Energy (XEL), which is yielding 5.4%, and Progress Energy (PGN), which is yielding 5.2%. Justin McCann is an electric utility analyst for Standard & Poor's