For just the 18th time since the last World War, the S&P 500 Utilities Index has suffered a pullback of more than 10 percent from its previous high. Excluding dividends, these past swoons have averaged a 23 percent decline over a period of about 14 months.
Our base case calls for further weakness in utility stocks, as the risk-reward balance remains skewed to the downside.
Over the past several months, we’ve systematically reduced our exposure to names we wouldn’t feel comfortable holding in an economic downturn and taken partial profits on some of our big winners—many of which have pulled back 15 percent to 20 percent since early July.
At the same time, our position in ProShares UltraShort Utilities (NYSE: SDP), an exchange-traded fund designed to deliver two times the Dow Jones US Utilities Index’s inverse daily performance, has gained about 18 percent since early July. We’ve also assembled a shopping list with dream prices for our favorite stocks.
Although we remain committed to buying and holding high-quality stocks for the long haul, our recent moves have positioned us to profit from whatever lies ahead.
We delve into some the recent trends in mergers and acquisitions involving master limited partnerships and other midstream operators.
Utility stocks continue to trade at elevated valuations. We revisit our investment strategy for this environment.
A baker's dozen of our Portfolio holdings have reported second-quarter results. Here are our key takeaways.
We share our take on the latest deal flow involving companies in our Utility Report Card, the first earnings of the season and hedging against potential downside in utility stocks.
The upcoming gubernatorial elections could have important implications for utilities in these states.
Critics who dismiss utilities as dinosaurs doomed for extinction aren’t paying attention to the forward-looking moves made by Edison International and some of its peers.
While the market fixates on whether the Federal Reserve will hike rates, too many income-seeking investors ignore the danger lurking in their portfolios.
It's been an active year for mergers and acquisitions in the utility sector. We discuss our key takeaways from a major deal that closed ahead of schedule and highlight some of the main themes that will be in play going forward.
Consolidation continues apace in the utility sector, as operators seek to take advantage of frothy stock prices to improve their economies of scale and increase their exposure to growing demand for natural gas. We update our takes on the various pending acquisitions involving the more than 200 essential-services stocks that we cover in our Utility Report Card.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Harness the tried and true wealth-building power of rising dividends.
Nothing compounds wealth like reinvesting a rising stream of dividends.
Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.