http://profitableinvestingtips.com/bond-investing/time-to-sell-utilities Time to Sell Utilities Because they typically pay high dividends, utilities are often a stand in for bonds. And like bonds, utilities are sensitive to interest rates. According to CNBC the prospect of the Fed raising interest rates has already hurt utilities. The time to sell utilities started last month! As investors eye a December rate hike, one group of stocks could be in real trouble. The S&P 500 utilities sector has been the worst-performing sector of late, losing almost 6 percent in one month. Since utilities stocks pay high dividends, they are particularly sensitive to rising interest rates. And as more traders begin to expect a move from the Federal Reserve next month, Gina Sanchez of Chantico Global said this is only the start of a sell-off in utilities. However, it is not yet time to sell all utilities. One name that looks particularly attractive is Duke Energy, said Eddy Elfenbein, editor of the Crossing Wall Street blog. Duke Energy has fallen more than 21 percent year to date, but Elfenbein said the stock could be a good portfolio addition given its high dividend yield. If you like utilities over the long run it might be time to sell utilities now and pick up a few at bargain prices after rates have gone higher. When Will It Happen? The Fed has been hinting at an interest rate increase for a year and a half. Now as unemployment is down to 5%, manufacturing is heading back up and the first hint of price inflation has occurred most analysts expect the Fed to raise rates in December. Forbes concurs that the Fed’s interest rate rise will be in December.