A Solid 2021 in the Books: Here’s How To Have Another in 2022

Through the first nine months of 2021, the Dow Jones Utility Average was up barely 1 percent. But after their fourth best Q4 since 1969, utilities’ 2021 return was actually 5 percentage points higher than the yearly average since 1993. It was also a good year for the three Conrad’s Utility Investor Portfolios. Top 10 DRIPs gained 19.5 percent on average, Aggressive Holdings 17.2 percent and Conservative Holdings 12.8 percent. Readers observing the discipline of recommended entry and partial profit taking points fared even better. At the top of the last year’s leader board were M&A candidates and oil and gas companies. Conversely, the biggest losers were 2020’s leaders renewable energy stocks, along with communications services and companies that ran afoul of regulators. Regulatory reversals pose an even greater threat to utilities this year. But unlike last year, the best in class renewable energy and communications companies are cheap and poised for a strong recovery. Every January feature article reveals my top picks and pans for each of the nine subsectors represented in the Utility Report Card. That includes this month’s best fresh money buys Pembina Pipeline (TSX: PPL, NYSE: PBA) and AT&T Inc (NYSE: T).