11 Stocks Offer 'Rare Opportunity' On Top Of 5%-Plus Yields

Analysts are saying that S&P 500 utility stocks are offering irresistible yields, with some reaching sky-high levels. Falling stock prices have resulted in 11 utilities in the S&P 1500, including PG&E, UGI, and Dominion Energy, now yielding over 5%. This presents an opportunity for value-focused investors willing to take on risk, as utility stocks are undervalued and offer upside that Treasuries lack. Morningstar states that utilities are currently the cheapest they've been since the 2009 recession, making it a rare opportunity for investors to buy high-quality utilities at attractive prices. Wall Street analysts also believe that all S&P 1500 and S&P 500 utility stocks yielding 5% or more are trading for less than what they'll be worth in 12 months. However, investors should be cautious of chasing the highest yields, as some may be due to unusual dividend payments. Morningstar recommends Entergy, NiSource, and Duke Energy as top utility sector picks. Overall, utilities are expected to have strong fundamentals and offer potential total returns of 8% to 10% at current valuations.