Bank of America Corp
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Financials : Banks | Large Cap ValueCompany profile

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S. Trust, Bank of America Private Wealth Management; Global Banking, which provides a range of lending-related products and services; Global Markets, which offers sales and trading services, and All Other, which consists of equity investments, residual expense allocations and other.

Premarket

Last Trade
Delayed
$24.05
-0.35 (-1.43%)
Bid
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B/A Size
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Market Hours

Closing Price
$24.40
Day's Change
0.00 (0.00%)
Bid
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Ask
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Day's High
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Day's Low
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Volume
(Light)
Volume:
344

10-day average volume:
85,611,568
344

UPDATE: Utility stocks have beaten the S&P 500 in two months of turbulence and in the long run

3:19 pm ET December 1, 2018 (MarketWatch)
Print

UPDATE: Utility stocks have beaten the S&P 500 in two months of turbulence and in the long run

By Philip van Doorn, MarketWatch

The safest of sectors makes investors lots of money during thick and thin

The S&P 500 utilities sector has been the best performer during the market decline that began in October. Don't roll your eyes.

We know it may not be a surprise, as utility companies offer investors a haven in times of turbulence. But what may interest you is how much better this stodgy sector's performance has been over long periods.

From the end of September, the S&P 500 Index has declined 8%, including reinvested dividends, while the S&P 500 utilities sector returned a positive 3.3%. Here's a chart showing how well the 12 sectors of the S&P 500 Index have fared over various periods:

Total returns

S&P 500 sector Sept. 28 through Nov. 26 2018 3 years 5 years 10 years 15 years 20 years

Utilities 3.3% 6.1% 42% 71% 175% 338% 264%

Consumer Staples 1.3% -2.1% 20% 46% 205% 281% 270%

Real Estate 1.2% 2.9% 20% 63% 302% 268% N/A

Financials -3.8% -3.7% 42% 67% 220% 67% 111%

Health Care -4.8% 11.0% 33% 78% 342% 316% 307%

Materials -7.1% -9.6% 25% 34% 204% 212% 281%

Communications Services -9.5% -8.9% 14% 18% 119% 181% 29%

Industrials -10.3% -6.0% 32% 51% 272% 253% 295%

Consumer Discretionary -12.2% 6.0% 33% 72% 504% 328% 374%

Information Technology -13.0% 4.9% 62% 123% 477% 334% 241%

Energy -14.2% -7.8% 4% -14% 50% 239% 310%

S&P 500 Index -8.0% 1.8% 36% 64% 273% 244% 229%

Dow Jones Industrial Average US:DJIA -6.5% 1.7% 49% 73% 266% 267% 323%

Source: FactSet

The S&P 500 utilities sector has been the best during the post-September market turmoil and has ranked second for 2018 through Nov. 26. But if you look at the longer periods, the total returns exceed those of the entire S&P 500 for all periods except for 10 years.

But that 10-year figure is a bit deceptive. You need to consider what occurred before this 10-year period began. The S&P 500 was down 34% (including reinvested dividends) for two years through Nov. 26, 2008, while the utilities sector suffered a far milder 13% decline.

The 20-year chart shows that, for the most part, the utilities sector has had less "downside capture" than the index:

There's no question that over the past five years, the information-technology sector, driven by the market-cap-weighted performance of the FAANG companies (Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL)), has been the place to be. But the FAANG stocks have all fared even worse than the S&P 500 since the end of September, despite the companies' fast growth.

The 15-year and 20-year returns give evidence to the importance of the utilities sector: People and companies need those services in what is a critical industry protected by regulators. Utilities also reward investors with steady dividend payouts.

Investing in utility stocks

Concentrating on individual stocks can be a risky endeavor. Shares of PG&E Corp. (PCG), the owner of Pacific Gas and Electric Co., are down 47% for 2018. Investors have worried that the company may be held liable for the California wildfires (http://www.marketwatch.com/story/pge-stock-rallies-as-bankruptcy-fears-ease-2018-11-16). Then again, some investors have looked at the decline as an opportunity (http://www.marketwatch.com/story/pge-stock-rallies-as-bankruptcy-fears-ease-2018-11-16).

Regardless of how the PG&E saga plays out, there's no question that a safer way for investors to gain exposure to the utilities sector is through an exchange traded fund, such as the Utilities Select Sector SPDR ETF (XLU), the Vanguard Utilities ETF (VPU) or the iShares U.S. Utilities ETF (IDU).

The sector

Here are all 29 stocks included in the S&P 500 utilities sector, ranked by how well they have performed over the past five years:

Company Ticker Total return - 5 years Total return - 10 years Total return - 15 years Total return - 2018 through Nov. 26 Dividend yield

American Water Works Co. US:AWK 146% 506% N/A 3% 1.97%

NiSource Inc US:NI 139% 723% 486% 4% 3.02%

NextEra Energy Inc. US:NEE 139% 405% 803% 16% 2.51%

CMS Energy Corp. US:CMS 124% 633% 842% 11% 2.81%

Ameren Corp. US:AEE 124% 211% 216% 18% 2.80%

Evergy Inc. US:EVRG 123% 362% 469% 15% 3.19%

Xcel Energy Inc. US:XEL 116% 313% 470% 9% 2.97%

DTE Energy Co. US:DTE 106% 385% 496% 9% 3.24%

Alliant Energy Corp US:LNT 103% 322% 545% 7% 3.03%

WEC Energy Group Inc US:WEC 102% 361% 584% 10% 3.13%

Exelon Corp. US:EXC 102% 26% 160% 19% 3.05%

Pinnacle West Capital Corp. US:PNW 100% 362% 342% 8% 3.33%

Public Service Enterprise Group Inc. US:PEG 97% 168% 376% 7% 3.37%

American Electric Power Co. US:AEP 92% 280% 411% 7% 3.53%

Eversource Energy US:ES 91% 306% 463% 8% 3.02%

Entergy Corp. US:ETR 74% 62% 195% 10% 4.24%

Consolidated Edison Inc. US:ED 72% 203% 288% -5% 3.66%

NRG Energy Inc. US:NRG 59% 91% N/A 38% 0.31%

Duke Energy Corp. US:DUK 53% 209% 462% 8% 4.27%

CenterPoint Energy Inc. US:CNP 47% 251% 455% 2% 3.99%

Sempra Energy US:SRE 46% 239% 520% 7% 3.20%

Southern Co. US:SO 42% 104% 215% 0% 5.26%

FirstEnergy Corp. US:FE 42% 6% 111% 28% 4.03%

Edison International US:EIX 38% 127% 310% -12% 4.48%

PPL Corp. US:PPL 37% 61% 207% 4% 5.34%

Dominion Energy Inc US:D 36% 204% 341% -5% 4.51%

AES Corp. US:AES 26% 145% 112% 48% 3.38%

Scana Corp. US:SCG 20% 112% 162% 20% 1.06%

PG&E Corp. US:PCG -28% -6% 59% -44% 0.00%

(MORE TO FOLLOW) Dow Jones Newswires

December 01, 2018 15:19 ET (20:19 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

UPDATE: Utility stocks have beaten the S&P 500 -2-

Source: FactSet

You can click on the tickers for more about each company, including news, profiles, charts, ratings and financials.

Don't miss: These stocks are in bear territory, but analysts expect them to roar back (http://www.marketwatch.com/story/these-stocks-are-in-bear-territory-but-analysts-expect-them-to-roar-back-2018-11-26)

Create an email alert for Philip van Doorn's Deep Dive columns here (http://www.marketwatch.com/tools/alerts/newsColumn.asp).

-Philip van Doorn; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires

December 01, 2018 15:19 ET (20:19 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

MW UPDATE: Utility stocks have beaten the S&P 500 -2-

Source: FactSet

You can click on the tickers for more about each company, including news, profiles, charts, ratings and financials.

Don't miss: These stocks are in bear territory, but analysts expect them to roar back (http://www.marketwatch.com/story/these-stocks-are-in-bear-territory-but-analysts-expect-them-to-roar-back-2018-11-26)

Create an email alert for Philip van Doorn's Deep Dive columns here (http://www.marketwatch.com/tools/alerts/newsColumn.asp).

-Philip van Doorn; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires

December 01, 2018 15:19 ET (20:19 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

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