Boomers Are Flocking to These 3 Utility Stocks for Yields Above 6%

"as they not only pay a fat yield but can also deliver upside. Utility companies are not directly exposed to tariffs, while being exposed to tailwinds from the AI buildout. Plus, ongoing interest rate cuts are adding another incentive for investors to buy and hold these stocks. Treasury yields are set to trend lower as a result of these rate cuts, so investors are naturally gravitating towards high-yield stocks."

"Suburban Propane Partners LP distributes energy-related products. They mainly sell and deliver propane, fuel oil, and other fuels. Beyond that, Suburban also sells natural gas and electricity. It is more of a hybrid instead of a pure utility company. SPH stock has been mostly rangebound over the past year. It is down 11.4% from its highs of $22, but can easily recover as interest rate cuts take effect and both natural gas and electricity distribution businesses see tailwinds."

Utilities stocks have become a defensive refuge due to limited exposure to negative market catalysts and tariffs. Interest-rate cuts are expected to push Treasury yields lower, prompting investors to seek high-yield alternatives such as utilities. Utilities benefit from AI-related infrastructure tailwinds while retail and consumer staples typically offer lower yields and greater tariff vulnerability. Suburban Propane Partners LP operates as a hybrid energy distributor selling propane, fuel oil, natural gas and electricity, with SPH down about 11.4% from recent highs and analysts projecting healthy EPS growth and a well-covered 6.73% dividend yield. Northland Power generates electricity from renewable sources.

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