Customer Effort scores for US utilities declined by one point year-over-year to 722, signaling a setback driven primarily by billing and payment friction. Despite the overall decline, 31 utilities were recognized as 'Easiest to Do Business With,' with leading practices including improved bill transparency and customer support programs. The decline reflects affordability pressures and the need for utilities to better communicate billing information and provide payment flexibility.

U.S. investor-owned utilities plan to spend $1.4 trillion on capital projects through 2030, a 21% increase driven primarily by AI and data center expansion. This surge in spending is expected to lead to future rate increase requests, with utilities already seeking $31 billion in rate hikes in 2025 alone. The top 5 utilities account for over half of planned capital expenditures.

Recession odds for 2026 have risen to 28% according to prediction market Kalshi, up from below 20% in February due to poor economic data and geopolitical tensions. The article recommends two defensive ETFs—consumer staples and utilities—as hedges against potential economic downturns, as these sectors are more resilient during recessions.

Rising oil prices due to Middle East geopolitical conflict are rippling through the economy beyond the energy sector. Travel companies like Carnival and JetBlue face higher fuel costs, shipping companies UPS and FedEx are implementing fuel surcharges, and consumer staples makers like Procter & Gamble and Conagra will see increased ingredient and packaging costs. Companies are expected to pass these rising costs to consumers through price increases and shrinkflation.

Equinix (EQIX), a data center REIT, is highlighted as an attractive dividend growth stock with 11 consecutive years of per-share payment growth and 10% dividend increases in both the last and current year. The company benefits from the AI data center industry's projected 27% annualized growth through 2035, while its REIT structure allows it to distribute most profits to shareholders tax-efficiently.

JPMorgan Chase CEO Jamie Dimon warns that inflation could be a "skunk in a party" if it persists longer than expected, particularly due to geopolitical risks like the Iran conflict potentially disrupting oil supplies. While Dimon expects the Iran war to have limited inflationary impact if short-lived, he cautions investors are too complacent about inflation risks. The article recommends utility stocks, particularly the Vanguard Utilities Index Fund ETF, as a hedge against potential sustained inflation and higher energy prices.

With February's weak jobs report (92,000 jobs lost, 4.4% unemployment), Middle East tensions, and AI concerns, investors are rotating into defensive stocks and sectors. Recommended plays include healthcare, utilities, consumer staples, energy majors, defense contractors, and high-quality AI infrastructure leaders that offer stable cash flows and pricing power.

As AI-driven demand boosts energy and utility stocks, four dividend-paying companies offer attractive opportunities for growth and income investors. Duke Energy, Enbridge, Enterprise Product Partners, and EOG Resources are highlighted as solid income stocks with strong fundamentals and consistent dividend histories.

Federal Reserve Governor Christopher Waller stated that the March interest rate decision is a coin flip, dependent on February's labor market report. Previously advocating for rate cuts due to weak labor markets, Waller's shift reflects stronger-than-expected January job growth of 130,000. The CME Fed Watch tool shows a 96.1% probability of rates holding steady in March, with potential cuts in June and December. Key economic data releases on March 6 and 11 will influence the decision.

Three major companies reported earnings this week with mixed results. Coca-Cola beat EPS expectations but missed on revenue, guiding for 4-5% organic revenue growth in 2026. Robinhood surpassed EPS estimates but fell short on quarterly revenue, though annual revenue grew 52% YOY, with strong potential from its new prediction markets initiative. Duke Energy beat on both top and bottom lines with a $16 billion increase to its five-year capital plan and extended 5-7% long-term EPS growth guidance through 2030.

Three major corporations released mixed earnings results: Coca-Cola beat EPS expectations but missed on revenue due to currency headwinds and impairment charges; Duke Energy exceeded both EPS and revenue forecasts driven by infrastructure investments; Fiserv topped EPS estimates despite a slight revenue miss, demonstrating resilience through strategic acquisitions and operational efficiency.

The article compares two utility-focused closed-end funds (CEFs) as ways to invest in AI's power demand through dividend-paying vehicles. Gabelli Utility Trust (GUT) offers a 10% yield but trades at an 87% premium to NAV, while Duff & Phelps Utility and Infrastructure Fund (DPG) yields 6.3% and trades at an 11.5% discount. The author recommends timing entries into GUT when its premium drops significantly, as historical data shows it can deliver strong returns despite high valuations. GUT maintains steady dividends while DPG has cut dividends twice in three years.