Utilities Hit New Highs (XLU, SO, D, EXC, CEG, SRE, PPL)

Published on Wednesday, 21 December 2011 17:20 Written by Paul Oldrini

New York, December 21st (TradersHuddle.com) - The utilities sector continued to move higher and closed at another fresh 3-year high on Wednesday. The sector not only outperformed the boarder markets today, it has been outperforming over the past few months with gains coming across the sector driven by strong rally from the large cap stocks. Utilities SPDR (ETF)(NYSE:XLU) was up 1.505 to $35.53. The ETF has soared over 14% so far this year.

The Southern Company (NYSE:SO), in which the ETF has the biggest allocations, surged 0.97% close at $45.86 after hitting an all-time high of $45.93 earlier in the session.

Dominion Resources (NYSE:D), which contributes 6.93% to the ETF’s total portfolio, climbed 1.29% to $52.79 and made a life time high of $52.84. Yesterday, the company’s board of directors assured the dividend policy it set in December 2010 to target a dividend payout ratio of approximately 60-65% of expected earnings.

Exelon Corporation (NYSE:EXC) edged up 2.48% to $43.38 after The U.S. Justice Department allowed the company an $7.9 billion acquisition of Constellation Energy Group, Inc.(NYSE:CEG), adding condition that Exelon sell three electricity-generating plants in Maryland.

Constellation Energy Group (NYSE:CEG) was the biggest gainer on S&P 500 and climbed 2.86% to $39.60.

Shares of various large cap utility stocks rose on the S&P 500 including, PPL Corporation (NYSE:PPL) added 2.44% to $29.41 and Sempra Energy (NYSE:SRE) moved up 2.30% to $54.33.