Since mid-December 2015, the Dow Jones Utilities Average has rallied more than 12 percent—an impressive performance in what has been a dismal year for US equities.
These returns vindicate those of us who resisted the conventional wisdom that rising interest rates spell doom for utility stocks, increasing these companies’ costs of capital and reducing the value of future dividends.
But this success brings a new challenge: Many of our favorite utility stocks have rallied above our buy targets.
Although these stocks trade at lofty valuations today, weakness in the US economy and deterioration in key technical indicators suggest that equities could suffer further downside in coming months. Keep your powder dry and stay focused.
Our favorite utilities boast low costs of debt and equity capital that put them in prime position to accelerate their earnings and dividend growth by investing in renewable energy and gas distribution and transportation.
My colleague Elliott Gue has called for utility stocks emerge as the top-performing sector in the S&P 500 this year—I can’t say that I disagree. But investors must remain selective.
We share our latest news and analysis related to our model Portfolio holdings, from guidance updates to recently completed deals.
New Jersey Resources Corp continues to make all the right moves, but the stock still trades above our buy target.
All you need to know about third-quarter results from the holdings in our model Portfolios.
Here's our take on the first three Model Portfolio holdings to report third-quarter results.
Dominion Resources (NYSE: D) announced the utility sector’s first major takeover for this year, reaching an agreement to acquire Utah-based Questar Corp (NYSE: STR) for $25 per share, or about $4.4 billion.
The utility sector's implosion in 2002 and 2003 has some important lessons for MLP investors.
We highlight some of the key investment themes that stood out after three days of presentations and talking to management teams at the Edison Electric Institute's annual financial conference.
After the first day of presentations and meetings at the Edison Electric Conference's 50th Annual Financial Conference, one theme stands out: increasing adoption of solar power doesn't sound the death knell for regulated electric utilities. In fact, this would-be disruptor creates a huge growth opportunity for incumbent power producers.
Investor sentiment toward yieldcos has soured considerably since midyear. Here's why.
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.