Market volatility has returned in 2025, and investors are taking another look at how their portfolios are set up. The Utilities Select Sector SPDR Fund (XLU) is up 18.3% year to date as defensive stocks draw more attention. The appeal is straightforward because homes and businesses need electricity in any economy, which supports steady revenue even when markets are unsettled.
AES (AES) fits this backdrop as a high-yield pick with a 5.1% annual dividend yield. The Arlington, Virginia-based utility reported third-quarter 2025 results on Nov. 3 that showed a 30.6% rise in diluted earnings per share from the prior year, helped by new renewable projects and updated rates at its Indiana and Ohio utilities.
