Rarely has the difference between leading and lagging stocks been as stark as today, thanks in part to the rise of passive investment strategies and exchange-traded funds that offer one-stop exposure to a sector, industry, or theme.
And with the equity market trending higher, investors rightly question why they should go out on a limb by putting your money into an underperformer?
Our model Portfolios have benefited from investors’ headlong rush into the utility sector, though 17 of our picks trade above our value-based buy targets. Other stocks can’t seem to catch a break, regardless of their earnings.
Historically elevated valuations in the utility sector also create a scenario where investors tend to sell first and ask questions later, a dynamic that can create compelling buying opportunities.
Remember what sparked a selloff in Dominion Energy (NYSE: D) in late January and early February 2017?
Memory failed me despite all the time I spend in front of a Bloomberg terminal, taking notes on earnings calls and poring over quarterly results—I had to revisit my Feb. 3 Alert for all the gory details. This first-quarter hiccup fades into the background when you consider management’s guidance for stepped-up dividend growth and the stock’s 19 percent total return since that bout of profit-taking.
In this market, investors must remain nimble and have the courage of conviction to distinguish real buying opportunities from falling knives—that comes from understanding a company’s underlying business. That’s why we dedicate so much time to analyzing quarterly results in the Utility Report Card and attending industry conferences.
Third-quarter earnings season is in full swing, bringing some upside and downside surprises for our Model Portfolio holdings.
Rising electricity and natural-gas prices in Australia have padded AGL Energy's bottom line and contributed to tensions surrounding the company's long-standing plan to close the Liddell coal-fired power plant in 2022.
How utilities respond to storm-related outages can have important implications for regulatory relations.
We explore the reasons behind Southern Company's recent underperformance and explain why investors should stick with the stock.
The internet of things could be a game-change for electric utilities.
The Trump administration has clearly gone all-in on turning the supposed war on coal into a war for coal, but the outcome will depend on electric utilities and power companies. We'll focus on the risks and opportunities associated with government intervention when we attend the Edison Electric Institute's financial conference in November.
Massive distribution cuts from the likes of Plains All-American Pipeline LP have severely damaged midstream master limited partnerships' (MLP) reputation among income investors. But our favorite MLPs trade at favorable valuations and offer exposure to compelling volumetric growth stories.
Sempra Energy's takeover offer for Energy Future Holdings--the fourth bid that brought before the Public Utility Commission of Texas--has a good chance of securing approval, though some adjustments may be necessary.
AT&T and Verizon Communications' second-quarter subscriber additions surprised to the upside, catalyzing a sharp rally in these telecom titans' stock prices. We explain the value of taking a longer view on these names.
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.