Why were my utilities stocks down almost 30% from a year ago?
Utility stocks are very interest rate-sensitive. Because they borrow heavily to finance their operations as interest rates go up, the value of utility stocks tends to go down, because they have historically, paid a higher percentage of dividends than other stocks do. During the year you mentioned, there had been six increases in interest rates; that had adversely affected the value of utility stocks.
Utility stocks are very interest rate-sensitive. Because they borrow heavily to finance their operations as interest rates go up, the value of utility stocks tends to go down, because they have historically, paid a higher percentage of dividends than other stocks do. During the year you mentioned, there had been six increases in interest rates; that had adversely affected the value of utility stocks.
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