With the Philadelphia Utility Index still nearly 30 percent off its December 2007 high, utility stocks aren’t expensive. However, the yield differential between the strong and weak has narrowed sharply.

The highest yield isn’t always the best buy. In fact, reaching for a bigger dividend is an easy way to get burned.

The biggest mistake investors made in 2009 was being out of the market and missing the historic rally. The biggest many will make this year is overpaying for yield.

Seven years ago the power industry was on a precipice. Pushed by a credit squeeze, regulatory uncertainty and weak market conditions, two dozen companies were one false step from bankruptcy or had already fallen in.

Last year British regulators took an axe to water utilities’ customer rates and capital spending plans.Last month Severn Trent (OTC: SVTRF) responded, announcing a package of cost cuts and a reduction in its distribution.

Over the next five years new Growth Portfolio Core Holding Sempra Energy (NYSE: SRE) will spend $12 billion adding to its collection of low-risk power and gas distribution, pipeline and energy storage assets.

The secrets to Enterprise Products Partners LP's (NYSE: EPD) success are a well-managed balance sheet and a core business that’s never failed to produce a rising stream of fee-based income.