Utilties

The utilities sector refers to a category of companies that provide basic amenities, such as water, sewage services, electricity, dams, and natural gas. It is a large sector, and an important part of the U.S. economy, with a market capitalization of over $1.5 trillion (as of March 2021). Although utilities are private, for-profit companies, they are part of the public service landscape—providing as they do such staples for daily living—and are therefore heavily regulated. Investors typically treat utilities as long-term holdings and use them to generate a steady income for their portfolios.