For the 18th time since World War II, the S&P 500 Utility Index has given up more than 10 percent of its value from its most recent high. Does this pullback represent a healthy breather after a breathless run-up, or the start of a bigger correction?
This month’s feature article explores the factors driving recent weakness in utility stocks and the potential for further downside.
Over the past year, we’ve emphasized the importance of selling names that show signs of weakness in their underlying businesses and booking partial profits on stocks that have reached unsustainably high valuations.
We’ve also taken advantage of the market’s inclination to sell first and ask questions later when valuations become stretched, picking up shares of high-quality names that pull back on temporary hiccups. With utility stocks trending lower, we highlight some of the names that have dropped below our buy targets for the first time in a while.
This issue also reintroduces our list of dream prices for all our Portfolio holdings. Our favorite essential-service stocks will only reach these extreme valuations in a flash crash or panic-driven selloff, but this strategy gives us a shot to set ourselves up for windfall gains when there’s blood in the street.
Fourth-quarter earnings season is in full swing. You can find our take on results from the 28 companies that have reported thus far in the Utility Report Card. We plan to update our comments on the remainder periodically as earnings come in over the coming weeks; we’ll keep you apprised of our progress via regular updates.
We continue to leverage our expertise in the utility sector and other essential-service industries to uncover opportunities for our small basket of fixed-income securities. In this update, we highlight four new bond ideas and cash out of one of our existing positions.
Regulated gas, electric and water utilities won’t benefit directly from the Tax Cut and Jobs Act’s signature change: a reduction in the top corporate tax rate to 21 percent from 35 percent. But tax reform still creates a number of opportnities for regulated utilities, especially the strongest operators.
Two of our Portfolio holdings announced third-quarter results after the November issue of Conrad's Utility Investor hit the web.
Third-quarter earnings season is in full swing, bringing some upside and downside surprises for our Model Portfolio holdings.
US yieldcos have been around as an asset class for slightly less than five years. To date, the investment track record is a mixed bag. But the group is now getting a reboot that promises to match robust capital gains to already lofty yields.
President Trump instituted a 30 percent tariff on some imported solar panels, a decision that could slow the rollout in the US and squeeze out marginal competitors that lack electric utilities' scale and strong balance sheets.
Midstream heavyweight Kinder Morgan (NYSE: KMI) kicked off fourth-quarter earnings season for the energy sector last week. Here are our thoughts.
Utility stocks have lagged in the new year, but developments on the policy front largely have played out in the sector's favor.
We explore what the Nebraska Public Service Commission's approval of the Keystone XL pipeline's cross-border segment really means for TransCanada Corp.
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.