Public Utilities are a general grouping of businesses including companies that provide electricity, light and power, gas and gas transmission, telephone and telegraph services, and water. Because of the high degree of stability in their revenue generating abilities, public utility stocks do not fluctuate in value as much as most common stocks.
Public Utilities are regulated by Federal and State authorities and normally are given an exclusive right to perform their services in a specific area, free from any competition.
Utility Stocks are fairly stable because of the necessary services utility companies provide the public. They generally pay a high rate of dividend in addition to offering moderate growth potential.
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