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The Dow Jones Utility Average hit an all-time high in late June, backed off and is rallying again. The price-weighted index now sells for nearly 22 times trailing 12-months earnings and yields barely 3 percent.

The last time utilities yielded this little was just before the 2007-09 bear market. The only time since the early 1960s the P/E was this high was at the end of 2000, before a nearly 60 percent crash in the wake of Enron’s collapse.

Utility sector business fundamentals have rarely if ever been more secure. That’s the clear message from the break down of my five-part Quality Grade system, which I present in the Utility Report Card. The latest shot in the arm is a steep drop in essential service companies’ borrowing costs.

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Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b