Utility stocks set another series of records last month. As a result, price/earnings multiples are again moving toward the stratosphere. Meanwhile, dividend yields are scraping lows last seen immediately prior to the big declines of 2001-02 and 2008-09.
Despite good news, several essential services companies have seen a 10% drop so far in 2019. The reason: politics. Our view for some of them is investors are over-estimating risks and underpricing their strengths.
A baker’s dozen Portfolio companies hadn’t reported second quarter earnings when the August CUI issue went to post. In this special report, I wrap up their highlights, outlooks and what to do now.
Wall Street consensus is the U.S. Federal Reserve will officially close the book on three-and-a-half years of monetary tightening next week, by cutting its benchmark Federal Funds interest rate. But our focus needs to be on earnings and guidance, not headlines.
It seems California Governor Gavin Newsom will not preside over a utility collapse as former Governor Gray Davis did almost 20 years ago, thanks to a legislative fix to state utilities’ bottomless liability for wildfire damages.
Almost 20 years ago, dysfunctional rules for California’s unregulated power market drove the state’s two biggest electric utilities into bankruptcy and impacted the entire sector. This year, the "inverse condemnation" rule has triggered one bankruptcy filing and may push the state's other electric utilities' ratings toward junk.
These days, it seems every major US energy project is at risk to dissonant state and federal rules, regulatory delays and court challenges to permits. In fact, US energy companies might be excused for thinking America’s true energy policy is no longer “all of the above” but none.
Few sectors have dealt as much pain to unwary yield seekers over the past decade as communications. Here's the rundown on the weakest of the herd.
For those who want a play on solar and energy storage, there are better choices than Tesla (NASDAQ: TSLA).
Barron's is piling on with an article concerning AT&T Inc’s (NYSE: T) loss of DirectTV subscribers, following up on a cover story critiquing the telecom giant's acquisition of Time Warner last year. Investors, however, saw the situation quite differently, pushing the stock to solid gains on earnings day, despite media mono-focus on the pay television unit.
Kinder Morgan Inc (NYSE: KMI) has kicked off earnings reporting season for the US energy midstream sector. The most noteworthy takeaway: No real surprises.
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.