NEW YORK (TheStreet) --With rising temperatures taking hold of much of the country right now, CNBC's Brian Sullivan is putting the utilities sector in focus. On Monday's "Power Lunch" Sullivan spoke with analysts Travis Miller and David Burks to get their perspectives on the utilities sector.
Miller is a utilities analyst with MorningStar and Burks is a senior utilities analyst with Hilliard Lyons. Burks began by speaking to the short-term and long-term impact of this country-wide heatwave on utilities.
"On a short term basis it could impact earnings, you could see a boost here or there, but we think it's important to realize in the longer haul weather tends to balance out," Burks noted.
However, Burks relayed a bevy of statistics that showed how impressive the utilities sector has been in the last couple of years.
"Consider this, year-to-date the utilities are up 30% versus just a gain of 6% for the S&P 500. Also, since June 30, 2011 to June 30 of this year the return on the Dow Jones Utility average has been 100%, by contrast the total return on the Dow Jones Industrial average has been 64%," Burks said about the out-performance.
More specifically, Miller spoke about two utility companies his firm is diligently watching and that he feels could be smart plays for investors.
"Duke Energy (DUK - Get Report) and Dominion Resources (D), are two very high quality names right now. We like the investments they're making, the regions they're operating in, and the cap expectations numbers they're putting up," Miller said.
Moreover, there has been substantial growth opportunities with the two companies. Citing each have 6% dividend growth over the next few years, as well as yields for Dominion coming in at 3.5%, and Duke yields as 4%. "Both are really good long-term income type names," Miller added.
Shares of Duke Energy are higher 0.09% to $86.56, while shares of Dominion Resources are lower by 0.23% to $78.33 during afternoon trading today.