Constellation Energy and Sempra Energy are dependable utility stocks

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

“The utilities are a great place to hide when the economy’s deteriorating, but the best of them work even when the economy’s doing fine,” he said.

Stocks notched their second day of gains on Tuesday after new data showed that prices rose less than expected in November. Investors are looking to the Federal Reserve’s December meeting on Wednesday, which is largely expected to conclude with a 50-basis point rate hike.

Wall Street also continues to worry that the economy could tip into a recession next year, despite the anticipated easing of the Fed’s inflation strategy.

Cramer advised investors to consider adding shares of “steady-eddy” utility companies to their portfolios for their dependability. “They also tend to protect you with bountiful dividends that can cushion any potential downside,” he said.

Here are his top picks:

Constellation Energy

• The nuclear-powered electric utility company, which was spun off from Exelon earlier this year, is the top performing utility stock so far this year. Cramer said he likes the stock because he believes nuclear energy is the best option for carbon-free energy production in a reasonable timeframe. The company is also sure to attract funds looking for ESG plays, he added.

Sempra Energy

• Shares of Sempra energy are up over 24%, and the stock is the third top performer in its sector this year. Cramer said that he likes the company because of its wide natural gas pipeline network, growth at a reasonable price and CEO Jeff Martin’s strong leadership.