The S&P 500 is one of the most followed stock market index in the world. Mutual fund managers benchmark their returns against it, yet somehow the vast majority underperform the index every year. Many dividend investors choose to ignore the index, and instead focus on its components.
Yes, electric utilities are a mostly unloved sector among investors, even though everyone needs power. But maybe their steady and dividend-friendly shares have more appeal these days. Here's a look at three big names: American Electric Power, Constellation Energy and Allegheny Energy.
FirstEnergy, the fifth-largest investor-owned electric system in the U.S., has agreed to pay $4.7 billion for Allegheny Energy in an all-stock transaction that will create one of the biggest electric providers in the country.