2 No-Brainer Utility Stocks to Buy With $500 Right Now

Building and maintaining power plants is expensive, which is why utilities often carry a lot of debt. That's been a problem on Wall Street because investors are worried that the swift rise in interest rates will dent utility earnings. Thus, the utility sector has been out of favor. That's great news for long-term investors, even if all you have to invest is $500, because you can buy great companies at reasonable -- if not cheap -- prices.

The list includes utility giant NextEra Energy (NYSE: NEE) and relatively small Black Hills (NYSE: BKH), which happens to be a Dividend King. Here's what you need to know about these two utility stocks.

The core of NextEra Energy's business is Florida Power Light, the largest electric utility in the Sunshine State. This has been a very good region in which to operate because of the long-term migration patterns toward warmer climates, which has resulted in an increased customer base. Simply put, more customers means more revenue.

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Source Fool.com