From Dividend Growth Stocks:
It is human nature to want to jump on the “what’s hot” bandwagon and ignore what’s considered boring. Long considered the domain for “widows and orphans,” utilities have developed a somewhat stodgy reputation. Why are utilities considered good for widows and orphans? Here a few reasons:
1. They are generally less volatile than the market (low beta).
2. They sell what people need no matter what the economy is doing, thus;
3. Their dividends tend to be more stable and secure.
Utilities have their own special set of…