On September 18, the Federal Reserve cut the benchmark Fed Funds rate by 50 basis points, to a range of 4.75 to 5 percent. The long awaited pivot from “higher for longer” interest rates ignited an investment media frenzy. But since then, the Dow Jones Utility Average is up less than 1.5 percent, barely matching the S&P 500.
That’s hardly surprising. From mid-April when rate cut talk started heating up until the Fed finally acted, the DJUA soared nearly 30 percent. So utility stocks were already pricing in the initial shift.
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Bonds
Utility Bonds: Still Keeping It Short
A number of readers have asked my views on bonds as an alternative to dividend paying stocks. That’s understandable, given what’s been general investor disinterest in dividends over the past year and a half, even when companies have raised them reliably and robustly. -
News and Analysis
Top Takeaways from EEI 2023
After nearly two decades of flat demand, US utilities are already reporting substantial weather-adjusted increases. That’s from digitization of industries that require massive data collection and processing capabilities.
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News and Analysis
Five Key Takeaways from Q2 and What They Portend
Nine more CUI Portfolio recommendations have announced Q2 results and updated guidance since the August issue went to post. I’ll have a full recap and analysis for each in the September issue. But here’s what you need to know now.
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News and Analysis
Verizon and AT&T: Some Thoughts
How low can deep value stocks go? If you own AT&T Inc (NYSE: T) and/or Verizon Communications (NYSE: VZ), you’re no doubt asking that question.
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News and Analysis
Income Stocks and Interest Rates: Myth and Fact
I’ve heard this “simple rule” repeated thousands of times by investors, media personalities and even fellow analysts since I came into the advisory business in the mid-1980s. And I’m certain it will be regurgitated thousands more times long after I leave it, hopefully some decades from now.
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Income Insights
What to Make of Takeover Tuesday
There was an explosion of takeover activity in the Utility Report Card coverage universe today. Here’s a look at four deals announced today and what they mean for us.
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Income Insights
The Rest of Portfolio Q1 Earnings: What You Need to Know
Yesterday, I posted the May issue of Conrad’s Utility Investor, highlighting what’s important from Q1 results and guidance updates for 29 Portfolio recommendations. Since then, seven more of top picks have released results.
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Income Insights
Dominion Makes a Deal
Since the February issue of CUI posted, 15 more Portfolio recommendations have released calendar Q4 earnings and updated guidance. And none so far have been as potentially consequential as Dominion Energy’s (NYSE: D).
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Income Insights
Ignore Utilities’ Slow Start: Earnings and Guidance Point to a Fantastic Finish for 2024
In the January CUI, I highlighted the dramatic drop in utility borrowing costs starting mid-October as a major catalyst for sector growth in 2024. Since then, we’ve seen investor concerns intensify that the Federal Reserve will delay reducing the benchmark Fed Funds rate until at least late summer.
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Income Insights
No Q3 Earnings Armageddon for Utilities
Sellers were convinced higher for longer interest rates would undermine utility sector capital spending, and with it earnings and dividend growth, and priced stocks accordingly for a fall.But, so far at least, the fears of a sector-wide earnings Armageddon have proven to be wholly unfounded.
MODEL PORTFOLIOS & RATINGS
Aggressive Income Portfolio
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Conservative Income Portfolio
Harness the tried and true wealth-building power of rising dividends.
Top 10 DRIPs
Nothing compounds wealth like reinvesting a rising stream of dividends.
Endangered Dividends List
Warning: Falling Dividends.
Utility Report Card
Roger's current take and vital statistics on more than 200 essential-services stocks.
Conrad's Utility Investor
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