Despite its capital-intensive business model, utility companies are considered low-risk investment options during an economic downturn due to the indispensable nature of their services. Utilities provide customers with essential services such as heat, water, electricity, gas, etc.
With the Fed reiterating the need to have two smaller rate hikes by the end of the year, the economy is likely to enter a recession. Amid this backdrop, it could be wise to buy fundamentally strong utility stocks ONEOK, Inc. (OKE), Vistra Corp. (VST), and Brookfield Infrastructure Corporation (BIPC).
