The Best Utilities Stocks To Buy

Utilities stocks appeal to investors for a few different reasons.

• They are considered defensive investments, as demand for electricity, water, and gas remains stable regardless of economic conditions.

• Many offer attractive yields and therefore appeal to investors who like high-dividend stocks.

• Utilities companies often operate in regulated industries, providing consistent revenue and earnings, which can reduce volatility in a portfolio.

These were the most undervalued utilities stocks that Morningstar’s analysts cover as of Aug. 5, 2026.

This post originally appeared at Morningstar.