Stock Performance Makes Utilities Sexy

NSTAR, rated "buy," operates in energy distribution and transmission throughout Massachusetts. With an operating margin of 15.8% and a return on equity of 13.6%, the company is another stable standout. Over the past year, NST has risen 1.8%, outperforming the S&P 500 by 46.7 percentage points. The 4.7% dividend yield is an added benefit.

A third stock in this sector, also rated "buy," is Xcel Energy. The company is forward-looking, displayed in its investment in smart-grid technology and solar power. Xcel may benefit from federal stimulus dollars. And the dividend yield is a massive 5.4%.

TheStreet.com Ratings' model rewards stability and consistency over other attributes. In such volatile and uncertain times, the ratings generated by this approach to investing can be valuable. Using a top-down approach with safety-first criteria can lead to improved performance in shaky times.

'Buy'-rated utilities GICS Industry Company Ticker Overall Grade Run Date Gas Utilities NEW JERSEY RESOURCES CORP NJR A 2/27/2009 0:00 Water Utilities CALIFORNIA WATER SERVICE GP CWT B+ 2/27/2009 0:00 Electric Utilities MAINE & MARITIMES CORP MAM B+ 2/27/2009 0:00 Gas Utilities SOUTH JERSEY INDUSTRIES INC SJI B 2/27/2009 0:00 Multi-Utilities CH ENERGY GROUP INC CHG B 2/27/2009 0:00 Gas Utilities SUBURBAN PROPANE PRTNRS  -LP SPH B 2/27/2009 0:00 Gas Utilities WGL HOLDINGS INC WGL B 2/27/2009 0:00 Gas Utilities UGI CORP UGI B 2/27/2009 0:00 Multi-Utilities NSTAR NST B 2/27/2009 0:00 Multi-Utilities CONSOLIDATED EDISON INC ED B 2/27/2009 0:00 Water Utilities AQUA AMERICA INC WTR B 2/27/2009 0:00 Multi-Utilities WISCONSIN ENERGY CORP WEC B 2/27/2009 0:00 Electric Utilities NORTHEAST UTILITIES NU B 2/27/2009 0:00 Multi-Utilities PG&E CORP PCG B 2/27/2009 0:00 Electric Utilities CENTRAL VERMONT PUB SERV CV B 2/27/2009 0:00 Gas Utilities LACLEDE GROUP INC LG B 2/27/2009 0:00 Electric Utilities ITC HOLDINGS CORP ITC B 2/27/2009 0:00 Independent Power Producers & Energy Traders ENDESA-EMPR NAC ELEC (CHILE) EOC B 2/27/2009 0:00 Electric Utilities MGE ENERGY INC MGEE B 2/27/2009 0:00 Electric Utilities FPL GROUP INC FPL B- 2/27/2009 0:00 Water Utilities AMERICAN STATES WATER CO AWR B- 2/27/2009 0:00 Electric Utilities ENERSIS SA ENI B- 2/27/2009 0:00 Gas Utilities ENERGY WEST INC EWST B- 2/27/2009 0:00 Multi-Utilities XCEL ENERGY INC XEL B- 2/27/2009 0:00 Gas Utilities RGC RESOURCES INC RGCO B- 2/27/2009 0:00 Gas Utilities AGL RESOURCES INC AGL B- 2/27/2009 0:00 Electric Utilities PROGRESS ENERGY INC PGN B- 2/27/2009 0:00 Water Utilities MIDDLESEX WATER CO MSEX B- 2/27/2009 0:00 Multi-Utilities CENTERPOINT ENERGY INC CNP B- 2/27/2009 0:00 Multi-Utilities SCANA CORP SCG B- 2/27/2009 0:00 Multi-Utilities DOMINION RESOURCES INC D B- 2/27/2009 0:00 Gas Utilities CHESAPEAKE UTILITIES CORP CPK B- 2/27/2009 0:00 Gas Utilities NORTHWEST NATURAL GAS CO NWN B- 2/27/2009 0:00 Multi-Utilities AVISTA CORP AVA B- 2/27/2009 0:00 Multi-Utilities SEMPRA ENERGY SRE B- 2/27/2009 0:00 Electric Utilities WESTAR ENERGY INC WR B- 2/27/2009 0:00 Electric Utilities DPL INC DPL B- 2/27/2009 0:00 Electric Utilities FIRSTENERGY CORP FE B- 2/27/2009 0:00 Electric Utilities ENTERGY CORP ETR B- 2/27/2009 0:00 Gas Utilities PIEDMONT NATURAL GAS CO PNY B- 2/27/2009 0:00 Water Utilities PENNICHUCK CORP PNNW B- 2/27/2009 0:00 Multi-Utilities BLACK HILLS CORP BKH B- 2/27/2009 0:00 Electric Utilities SOUTHERN CO SO B- 2/27/2009 0:00 Source: Yahoo! Finance *these estimates may not necessarily reflect recent downward revisions.