Utilities Select Sector SPDR Pays a Good Dividend

The Utilities Select Sector SPDR (XLU) is an exchange-traded fund (ETF) that owns well known dividend-paying electric utilities. Its dividend yield is usually greater than two percent so XLU is an excellent choice for a dividend reinvestment portfolio. And its annual expense ratio is very low.

XLU holds large companies including Dominion Resources (D), Duke Energy (DUK), Exelen (EXC), Southern Company (SO) and TXU (TXU).

You could own XLU as a core holding and then add other electric utilities that pay higher yields to boost your returns.

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Exchange-Traded Funds (ETFs)
Utility Stocks Pay Reliable Dividends
Why Dividends Matter

Updated November 30, 2007.