The editor of The Utility Forecaster explains, "That's a powerful driver for dividend growth, which has already averaged more than 9% the past five years."

"WisdomTree International Utilities (DBU) is an excellent way to diversify outside of the U.S. in a defensive portfolio of quality stocks," says Carla Pasternak .

In High Yield International, she explains, "This ETF tracks the WisdomTree International Utilities Sector Index of international dividend-paying utilities outside of the United States and Canada. To be included in the index, companies must have paid at least $5 million in cash dividends on their common stock in the prior year. Positions are weighted based on the amount of regular cash dividends paid.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Why try to guess what the S&P, gold, the dollar or anything else might do in 2010 when you can invest sure and simple in a proven utility company that pays you to own it?" asks Neil George.

In his Stocks That Pay You, he looks to Otelco (OTT), an Alabama-based phone company, as his top investment idea for 2010.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Atlantic Power Corp. (ATP) sells power primarily to electric utilities in major U.S. markets under long-term contracts," notes income specialist Carla Pasternak.

The editor of High Yield Investing and High Yield International explains, "The firm has reorganized its share structure, has been listed on the Toronto exchange and expects a NYSE-listing shortly."

"I'm excited about Quanta Services (PWR), a contracting company that specializes in building utility transmission and distribution infrastructure," says Ian Wyatt.

In his Top Stock Insights, he explains, "The current focus in the U.S. of projects that improve energy conservation, utilize renewable resources, and improve air quality make Quanta an excellent long-term growth opportunity.

"Its customers are in the electric power, gas, telecommunications, and cable television industries. These are stimulus spending customers; i.e., big government organizations and utilities companies.

Wall Street watchers can be excused for feeling a little whipsawed this week. After watching stocks lose ground early in the week, they roared back Thursday, riding high on a bevy of upbeat earnings reports. That enthusiasm remains partially on display this morning with two of the three major U.S. stock indexes showing a positive opening ahead of the morning bell.

At about 7 a.m. ET, the Nasdaq Composite Index and S&P 500 were slightly higher, while the Dow Jones industrial average was down by about 4 points. The Dow gained 1.3% Thursday to close the session at 10,081.31, led by the strong earnings reports from five of the benchmark index's 30 component stocks.

"We particularly favor two companies in Brazil. The economy appears to be on the mend from the global financial crisis and should be expanding at a 5% pace again by 2010.

"Brazil's prosperity is translating into greater consumption of electricity and water. Two major beneficiaries are our Growth & Income holdings CPFL Energia (NYSE: CPL) and Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS), known as SABESP for short.

"I'm adding Itron (NSDQ: ITRI) to my diversified portfolio of stocks in the alternative energy space," says Elliott Gue.

In The Energy Strategist he explains, "The firm will benefit from both the HR 2454 bill (a cap-and-trade system designed to reduce U.S. greenhouse gas emissions) and the stimulus bill which included direct subsidies aimed at promoting efficiency and building a more intelligent electric grid.

"Itron is a leading play on energy efficiency and smart grid technologies, a key, near-term component of cutting carbon emissions.

"The road back from near bankruptcy in 2002 for CMS Energy (NYSE: CMS) has been a rocky one," says Roger Conrad. Here's an update from his specialty service, The Utility Forecaster.

"From Three Mile Island to the Enron meltdown, utilities have always recovered from disaster by cutting debt and operating risk and repairing regulatory relations.

"Last fall, the shares of CMS Energy -- our latest featured growth stock -- plunged from high teens to single digits on recession worries in embattled Michigan. Ironically, however, CMS' underlying business is healthier than at any time since the late 1990s.

"Over the past year, ITC Holdings (NYSE: ITC) has been focused on identifying ways to integrate wind and other renewable resources into the power grid," notes growth stock expert Alexander Green.

In The Oxford Club Communique, he explains, "This young company -- that despite being in the midst of the biggest economic slowdown in more than 70 years -- is taking in more than $600 million in annual revenue, enjoying 46% operating margins and experiencing 72% quarterly profit growth.

"Duff & Phelps Utility & Corporate Bond Trust (NYSE: DUC) owns a nice blend of corporates, utility, and mortgage-backed securities," notes income expert Bryan Perry in his growth & income oriented Cash Machine advisory.

"These types of securities are getting more attention with the notion of an economic recovery occurring late this year, implying a higher demand for power and thus a rebound in the utility sector as a whole.

"If investors can lock in a 7.5% yield through this senior debt holder of major global utilities, then you can rest assured that the monthly dividend, which was raised this month, is secure.

"For those in search of a pure play in the water infrastructure sector, my favorite bet is Insituform (NSDQ: INSU)," says Roger Conrad in his newly-launched advisory service, The New World.

Conrad explains, "Its most innovative product is its fast-growing 'trenchless' repair service to aging and cracked pipes." Here's his review.

"Rather than dig up and replace actual pipes, the process involves injecting a compound into the pipe itself which acts to seal any breaches. The result is a lower cost and far less intrusive repair.

"Insituform has languished in recent years, as overly aggressive expansion by prior management ran up against a brick wall of stagnant to falling system investment by municipalities.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

Roger Conrad, the advisory industry's leading authority on the utility sector, looks to American Water Works (NYSE: AWK) as his favorite investment idea for the coming year.

In The Utility Forecaster, he notes, "We now have the opportunity to buy America's premier water utility franchise at a discount to book value." Here, he explains the situation and his bullish outlook.

"In early 2003, Germany's RWE paid a hefty premium for American Water Works. Five years later in April 2008, RWE's new management took a $1 billion write-off to unload the company as an independent company in the U.S.

"As a result, we now have the opportunity to re-enter America's premier water utility franchise at a discount to book value.

"American Water has written off hundreds of millions in good will and overhauled oversight practices that had gone soft under RWE. But with third-quarter earnings surging 11% on a 6.2% revenue jump -- and more the same expected into 2009 -- its fortunes are building again.