by Richard Stavros

Utility investors should be forgiven for popping the champagne a little early this year, as they have much to celebrate: Utilities produced a stunning 33.1% total return in 2014, outperforming all other sectors in the S&P 500, while more than doubling the broad market's return.

This performance has once again proved that utility stocks are the ne plus ultra of equity-income investments, especially when safety and stability are in high demand. And the latter was certainly the case in 2014, with a year punctuated by various geopolitical and market uncertainties that kept investors on edge.

Though most economists viewed the Federal Reserve's taper of its extraordinary stimulus as a positive sign for the strengthening of the economy, many investors were not so sure.

And the huge 2.1% contraction in gross domestic product (GDP) during the first quarter increased concerns that the economy was still too weak to stand on its own without the Fed's monetary largesse, stoking fears that the economy could reverse course and fall into recession.

This was the first of several indicators that the global recovery was not as strong as some had believed. And geopolitical shocks such as Russia's annexation of Crimea gave the world an unwelcome reminder that political tension, if not outright conflict, can easily undo economic gains and hinder global trade.

Each of these factors spurred investors to seek safety in utilities since their highly regulated structure helps insulate them from external shocks.

Then, even as U.S. GDP was on the mend, spiking 4.6% in the second quarter and a further 5% in the third quarter, global growth began to slow in parts of Europe, Asia and Latin America. And that caught many investors off guard.

In October, the market suffered a sharp selloff that was just shy of formal correction territory, though thankfully it quickly recovered. Some believed the sudden decline was a response to the official conclusion of the Fed's stimulus, with investors anticipating a revaluation of the market as a result.