Constellation Power and Sempra Power are dependable utility shares

CNBC’s Jim Cramer on Tuesday offered investors a list of utility stocks he thinks should be on their shopping lists.

The utilities are a great place to hide when the economy is bad, but the best of them work even when the economy is good,” he said.

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Shares posted their second day of gains on Tuesday after new data showed prices rose less-than-expected in November. Investors are eyeing Wednesday’s December Federal Reserve meeting, which is widely expected to end with a 50 basis point hike in interest rates.

Wall Street also remains concerned that the economy could slide into recession next year despite the Fed’s expected easing of inflationary policy.

Cramer advised investors to consider adding “steady-eddy” utility stocks to their portfolios because of their reliability. “They also tend to protect you with generous dividends that can cushion potential downside,” he said.

Here are his top picks:

constellation energy

  • The nuclear-powered electric utility, which spun off from Exelon earlier this year, is the best-performing utility stock so far this year. Cramer said he likes the stock because he believes nuclear power is the best option for zero-carbon power generation in a reasonable timeframe. The company will also certainly attract funds looking for ESG games, he added.

Always energy

  • Sempra Energy shares are up over 24%, and the stock is the third top performer in its sector this year. Cramer said he likes the company for its broad natural gas pipeline network, growth at a reasonable price and strong leadership from CEO Jeff Martin.

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