The company is now on The Share Centre’s "buy" list, having produced interims in line with expectations.
"As price rises are linked to the retail price index, United Utilities is able to promise growing dividends by 2 percentage points above inflation until 2015, attracting income-seeking investors. The bid for Northumbrian Water earlier in the year also gave the sector a boost," Spooner explained.
He added: "However, the industry is regulated by Ofwat, which can create uncertainty for investors, who should note a government white paper on the industry is expected soon."
United Utilities believes it is well-positioned in the current regulatory period, with its ongoing efficiency plans and comparatively low-cost group debt.
"Uncertainty in the market continues as the economic outlook remains gloomy and investors are attracted to the sector’s defensive qualities. Following the recent fall-off in the market and increasing investor demand for high-yielding companies, we now recommend income seekers buy United Utilities," he explained.
Our data shows that the equity appears in the top-10 holdings of 10 funds, the majority of which are income vehicles. Rathbone Blue Chip Income & Growth has the highest weighting to the stock, at 5.18 per cent.
Performance of stock over 1-yr
Source: FE Analytics
The stock itself has returned just over 3 per cent over the past year.