#utilities

#utilities

If the Federal Reserve starts cutting rates in 2026, a specific category of stocks could see their valuations expand like a compressed spring finally released. Lower borrowing costs don't just make debt cheaper; they make future cash flows more valuable, dividend yields more attractive relative to bonds, and growth stories more credible. Here's how two rate-sensitive stocks might respond based on their financial structures and what analysts expect to see if rates drop this year.

Setting aside a designated day to switch utility providers will pay dividends in the long run

As housing, utilities, and everyday costs of living continue to climb, a growing share of Massachusetts residents say the math of staying in the Bay State no longer works. In a recent Boston Globe/Suffolk University poll and an informal survey of Boston.com readers, residents said Massachusetts is just too expensive to get by. The Globe/Suffolk survey found that about one-third of Massachusetts voters have seriously considered leaving the state in the past year because of affordability pressures, even as a majority still believe the state is generally moving in the right direction.

The current dynamics playing out in the stock market are really hard to describe right now. On the one hand, there are pockets of the economy that are red-hot, with hundreds of billions of dollars flowing into high-powered growth trends like AI that are clearly propping up valuations across the board. On the other hand, the vast majority of stocks in the overall market may already be in bear market territory. That's representative of a weakening consumer, and the view that valuations may have gotten a bit too distorted in the post-pandemic era.

as they not only pay a fat yield but can also deliver upside. Utility companies are not directly exposed to tariffs, while being exposed to tailwinds from the AI buildout. Plus, ongoing interest rate cuts are adding another incentive for investors to buy and hold these stocks. Treasury yields are set to trend lower as a result of these rate cuts, so investors are naturally gravitating towards high-yield stocks.

The AI tailwinds have really powered energy stocks over the past year, thanks to a looming surge in demand driven by new AI data centers coming online. Undoubtedly, it's not just the energy companies with AI data center partnerships in place that have won big. Even the heavy-duty machinery suppliers (think the turbine makers), vital for power production, have benefited greatly. Undoubtedly, the AI tailwind might not be so quick to fade for the energy companies that have gained significant ground in the past year.

A critical turning point in this development occurred in October when Minnesota state regulators greenlit the acquisition of Allete by asset management behemoth BlackRock - set to become Allete's majority stakeholder - and the Canada Pension Plan Investment Board. Allete owns Minnesota Power, the main electric utility in northern Minnesota. The approval came against significant community opposition and, as Truthout previously reported, an administrative law judge's report that strongly recommended against the deal.

When discussing bills, one roommate said she didn't watch TV so she wasn't going to contribute to the cable bill. A lot of people just stream/download now, so we didn't question it. But now, when we're watching TV, she comes and sits to watch it too! The first time, one roommate told her it was cable, not a streaming service, so it wasn't fair for her to watch it with us.

What's the first thing that springs to mind when someone mentions the Nasdaq Composite? It's likely tech stocks that are trading at nosebleed valuations, many without any cash flow at all. The index is packed with the world's fastest-moving software, semiconductor, and social-media giants, all of them celebrated more for explosive price swings than for the slow, steady drip of cash that dividends provide.

Most investors are well aware of the distinction between most dividend stocks and dividend aristocrats. The latter group is comprised of companies that have paid out a growing dividend for more than 25 years. Among this group, we have dividend kings, which have paid increasing dividends for more than five decades straight. I'm going to highlight three such companies in this piece.

"After analyzing a detailed pipeline of data center projects, we predict an average global growth rate of 17% per year in data-center-related power demand between 2022 and 2030," the report states. In the US, that average growth rate jumps to 25%. By 2030, data centers could account for more than 14% of the US's total power demand, even with gains in energy efficiency from new chips and sustainable data center infrastructure.

24/7 Wall St. hosts Doug McIntyre and Lee Jackson analyze a major move by BlackRock to acquire the utility company AES, describing it as the beginning of a larger wave of consolidation across the utility and banking sectors. It could signal how companies like BlackRock might be positioning themselves to control the energy sources needed to power data centers and AI infrastructure.

Reliable high-yielders are your best friends today, and they will likely remain that way for the coming years. That's especially true if they operate as midstream or as a utility. They have a rare combination of defense and growth that no other sector can match. Demand for electricity, gas, and water does not flutter when the headlines turn grim, so cash flow stays predictable and dividends stay funded.

The average monthly cost for the six most common utilities is about $523, and understanding these costs can significantly influence your home budget.