Buybacks Turn U.S. Utilities Into Lowest-Income Stocks

Utility stocks may be the worst choice for income-seeking U.S. investors even though they have relatively high dividends, based on data that S&P Dow Jones Indices compiled for a report today. The Standard & Poor’s 500 Utilities Index had the lowest yield last year among the S&P 500’s 10 primary industry groups after adjusting for stock repurchases. The combined dividend and buyback yield was 3.96 percent, while industrial stocks had the highest yield at 6.69 percent.