Utility stocks were once considered widow-and-orphan stocks. They earned that moniker because they paid out steady dividends but did not have much potential for growth.

In this era of low interest rates, they have become more popular.

But low rates are coming to an end, albeit very slowly.

What will that mean for utilities?

Well, conventional wisdom would tell you not to buy utilities, as dividend-paying stocks may now have to compete with cash.

But that wisdom may prove unwise in this market – if you’re selective.

First, the Fed is planning to raise rates slowly.

It expects the fed funds rate to be only 150 basis points higher than it is today by sometime in 2023. That is not much of a rise.

Now, if the Fed changed course and decided to get aggressive, it might target raises of 2% or 2.5% per year – still low by historical standards.

Under this more aggressive scenario, utilities could suffer – but not this one.

Vistra Corp. (NYSE: VST), which is based out of Texas, is not planning to be your ordinary utility.

It is one of many companies that will see growth from a sector that will come into its own in a big way over the next decade – electric vehicles.

While everyone is focused on finding the next Tesla, stealth plays could be available in the form of companies that generate and store power in high-growth, high-population states.

Texas fits that bill nicely.

The owners of electric vehicles will need to purchase charging power from a utility company. And in many large population centers in Texas, that company will be Vistra.

Vistra pays a nice dividend. But unlike traditional utilities, the income it provides through dividends could be dwarfed by the future growth in its share price.

Vistra’s management is aligned with shareholders on this, and insiders have been known to buy up the company’s own shares from time to time.