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Gas utility stocks face rate hike challenge, could benefit from market fear

Dec 28, 2018 - SNL Energy Finance Daily

Gas utility stocks, often counted on for their dividend income, will have to compete in a rising interest rate environment as 2019 begins, although fears of economic instability could end up spurring a flight to safety that would benefit the sector, analysts said.

The Federal Reserve raised its benchmark interest rate Dec. 19 for a fourth time this year, setting its target range for the federal funds rate at 2.25% to 2.50%. Escalating interest rates can cut into the attractiveness and comp...