The Globe and Mail reports in its Tuesday edition that investing in utilities has proven fruitful for those seeking regular income. In a Globe special, Joel Schlesinger writes that thanks to a low-interest-rate world investors have flocked to these equities. The iShares S&P/TSX Capped Utilities Index ETF over the past five years has averaged a total return of about 5 per cent a year, and today pays a dividend yield of 3.7 per cent. In the United States, the iShares U.S. Utilities ETF yields over 4 per cent. Yet observers are increasingly cautious, warning investors that they could be in for a nasty shock. Utility stocks can be interest-rate sensitive due to their high levels of debt. Rising rates can also make the dividend less attractive as interest-bearing securities become more popular. In Canada, larger firms such as Fortis, Emera and Canadian Utilities "are well managed, diversified companies with long track records of dividend growth and share price appreciation," says Tony Demarin at BCV Asset Management in Winnipeg. However, as the long run of falling interest rates continues, the risk builds. Still, experts say that rising rates themselves may not be enough to negatively affect the industry.