Ameren Corp (AEE), Exelon Corporation (EXC): Are Your Dividend Stocks Overvalued?

Can this sector survive?
Anyone analyzing gains this year would be wise to question utilties’ rapid rise, but a more long-term review adds a pinch of perspective to pricing. Ameren Corp (NYSE:AEE) is still down 20% from pre-recession highs, while Exelon Corporation (NYSE:EXC) stock’s jump leaves it 60% below its 2009 value.

^DJUSUT data by YCharts

Here at the Fool, we don’t look to past prices to predict future ones, and we don’t play the macro game to figure out which sector will soar as Mr. Market shifts his weight around. In every sector, there are excellent companies with fair prices, and in the long run these corporations will succeed.

A bull market means investors need to be all the wiser allocating investments, but the best companies, utilities or otherwise, will continue to reward investors for years to come.

The article Are Your Dividend Stocks Overvalued? originally appeared on Fool.com and is written by Justin Loiseau.

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends BlackRock and Exelon.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.