Saturday, January 14, 2012

Put Your Long-term Dollars in Utilities

iShares Dow Jones Utilities Index Fund (NYSE: IDU ) This ETF seeks to mimic
the return of the Dow Jones Utility Index. At least 90% of its assets are in
depository receipts that represent the index. And the index is composed of
electricity, gas, water stocks, etc. Last year, this ETF had a return of 18.6%.
It currently pays a dividend of $2.90, providing a dividend yield of 3.37%.
Technically IDU is in a powerful bull channel, which keeps pace with its 50-day
moving average. It is resting on that line now, and so any break below it would
be an excellent opportunity to make a long-term investment in the utility
sector. Click to Enlarge

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