This month’s update to the Utility Report Card includes our analysis of first-quarter earnings and guidance for more than 200 essential-service stocks, while the feature article delves into some of the key trends that emerged during this exhaustive process.
With utility stocks still trading at elevated valuations, our investment strategy hasn’t changed appreciably; investors should remain disciplined and avoid chasing stocks beyond our value-based buy targets.
At the same time, solid first-quarter results underscore the strong fundamentals that should drive above-average earnings and dividend growth for our favorite utility stocks.
Sentiment toward utility stocks remains bullish. NextEra Energy’s (NYSE: NEE) share price rallied to a new all-time high, despite the Public Utility Commission of Texas rejecting its proposed purchase of Oncor Electric Delivery—the company’s second deal failure in two years.
But high valuations create lofty expectations, increasing the likelihood that investors will view any hiccup, real or imagined, as an excuse to take profits.
Utility stocks have continued to rally, propelling a record 20 of our Portfolio holdings above our value-based buy targets--a high-quality problem. We also highlight the solid fourth-quarter results posted by a handful of our aggressive picks.
We analyze fourth-quarter results from some of the biggest companies in our model Portfolios and explain why one of our Aggressive Income Portfolio holdings surged 11 percent after reporting earnings.
Our basket of junk bonds outperformed in a challenging fourth quarter.
A dividend cut hits investors with a double-whammy, reducing their current income and catalyzing a sharp selloff in the stock. In contrast, a steadily increasing payout eventually will push a company’s share price higher, particularly when it’s supported by the underlying business.
The growing popularity of green bonds creates opportunities for savvy investors and can help utilities to reduce their cost of capital.
ARPA-E's Energy Innovation Summit, which takes place next week, could give us early insights into President Trump's energy policies.
Could Donald Trump's support for the controversial Keystone XL and Dakota Access pipelines foment local opposition to other energy projects?
The December 2015 issue of Conrad's Utility Investor emphasized the importance of diversification to generating differentiated returns in 2016. Despite a few laggards, that article's picks outperformed, generating an average total return of 18.6 percent. This year, we opted to highlight 10 trends that should drive outperformance.
What does the utility sector’s budding relationship with big tech mean for investors?
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.