Invesco's Mallon: Why utilities are the unsung heroes of the stockmarket

Fuelling recovery in markets

We typically think of the utilities sector as a classic defensive area of the equity market, one that is particularly attractive in the current environment.

They are known for being stable businesses with a reliable dividend stream. During periods of market volatility, they tend to perform better than other areas of business more sensitive to the economic cycle. People need water, gas and electricity regardless of where we are in the economic cycle, and the sector will be largely unaffected by a recession or indeed a pandemic. Together with government-backed revenue streams they have a reputation for providing steady, if unexciting, returns. Havelock London's Beddall: Where can I find a shoeshine boy? However, this is only half the ...