Survivor: These Funds Resist the Recession

See David Peltier's video of utility companies with safe dividends and those investors should avoid. Peltier is portfolio manager of the Dividend Stock Advisor.

For investors who have thrown in the towel, it's worth considering utilities funds.

After they collapsed during the bear market of 2000 to 2002, some analysts gave them up for dead. Then, without much fanfare, utilities funds recovered and raced ahead.

During the five years ending in January, utilities funds returned 6.2% annually, outdoing the S&P 500 by 10 percentage points and beating every domestic equity category except precious metals, according to Morningstar. Utilities funds remain solid options for surviving the recession. Their saga demonstrates how battered funds can change their ways and eventually rebound. ...