Revisiting XLU – A Forgotten Utility Bet That’s Paid Off (For Now)
Posted on Notable Picks & Portfolio Strategy Center (NPPSC.com)
Sometimes the stocks you forget about quietly do the best. That’s the case with my position in XLU – the Utilities Select Sector SPDR Fund. It’s one of those “set it and forget it” plays I made without much fanfare. I recently checked back in on it, and… well, it’s been working.
My Position at a Glance:
| Metric | Value |
|---|---|
| Shares | 20 |
| Average Cost | $61.88 |
| Current Price | $76.32 |
| Total Gain | + $288.80 (+23.34%) |
| Market Value | $1,526.40 |
| Day’s Gain | + $18.40 (+1.22%) |
Why I’m Bearish on XLU Right Now
- Rising Interest Rates: Utility companies often carry high debt loads. As rates go up, borrowing costs rise—and that eats into profits.
- Regulatory & Environmental Costs: Clean energy investments and government mandates are squeezing margins and increasing capex.
- Better Alternatives? As yields on bonds rise, investors may start rotating out of defensive dividend stocks like XLU.
Dividend Income Snapshot (Add to Long-Term View)
- XLU Dividend Yield: ~3.1%
- Last Dividend Paid: $0.51/share
- Annualized Yield on Cost (YOC): ~3.3% (based on my entry price)
Chart It Out
| Date | Price |
|---|---|
| Purchase | $61.88 |
| Today | $76.32 |
| 52-Week Low | $62.55 |
| 52-Week High | $83.41 |
[Insert chart image showing price movement – optional visual enhancement]
Final Thoughts:
This was a great reminder that sometimes patience pays. But smart investing also means knowing when to take profit—and based on macro trends, I’m not bullish on utilities for the rest of the year. I’ll be watching XLU closely and may trim or sell into strength soon.
