How Rising Short-Term Rates Squeeze Utility Dividends

Dividend Investing with Fexingo: Income Stocks, Yield, and Long-Term Cash Flow Portfolios · Jun 3, 2026 · 8m · transcript

In this episode of Dividend Investing with Fexingo, Lucas and Luna examine how rising short-term Treasury yields are putting pressure on utility sector dividends as of June 2026. With the 2-year yield climbing to 4.05% and the Fed holding rates steady near 3.62%, utilities like those in the VYM ETF have seen a 1.5% lift over five days, but the broader sector faces headwinds. They discuss the mechanics of utility capital structures, why high leverage makes these stocks sensitive to short-term rates, and what dividend investors should watch in the coming months. The hosts also touch on the…