Three quality utility stocks to buy now

Utility companies have outperformed the market over the long run, says professional stock picker James Smith. Here, he tips three such stocks to by now.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: James Smith, manager of the Premier Global Power & Water Fund.

With investment grade government securities showing increasingly lower yields, it's hard to find attractive assets that offer a decent income. Utilities have often been seen as a reliable source of yield, but the performance of the sector over recent years has been less than spectacular. This is particularly true in Europe, where firms over-extended themselves in years of plenty, leaving them ill-prepared to face tougher times.

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