Roger S. Conrad

“Reversion to the mean” should still be a top investing theme for 2025: With more loaded laggards vaulting to the front as AT&T Inc (NYSE: T) and Kinder Morgan Inc (NYSE: KMI) did last year, and the highest flying stocks coming back to earth. So far this year, however, more money has been going into market favorites than turnaround stories. And the result is 15 Conrad’s Utility Investor portfolio stocks sell above my highest recommended entry points, with three meriting taking profits.

Four years ago, Brookfield Renewable’s tax advantaged partnership units (TSX: BEP-U, NYSE: BEP) and C-Corp shares (TSX: BEPC, NYSE: BEPC) were trading at twice current levels. That’s despite growing profits 10 percent plus annually since, and paying a dividend now 23 percent higher. I expect both partnership units and C-Corp shares to double in the next 12 to 18 months.

Since Thanksgiving, shares of Edison International (NYSE: EIX) are down  more than -40 percent. The stock sells for just 8.8 times the mid-point of its 2025 earnings guidance range of $5.50 to $5.90 per share. And the dividend yield is nearly 7 percent, following last month’s 6.2 percent increase. The reason: Southern California’s devastating wildfires this year, and the possibility utility equipment was responsible for some damage and loss of life. Estimates run from $80 to $170 billion.

From Deepseek AI to federal government upheaval: There’s been no shortage of stock market-moving headlines since the January issue of Conrad’s Utility Investor posted. Utilities and essential services stocks aren’t known for volatility. But several have taken investors on wild rides over the last month.

XPLR Infrastructure (NYSE: XIFR), formerly known as NextEra Energy Partners, will not pay a dividend for the foreseeable future. That’s the chief result of the company’s strategic review announced in late January. I highlighted the rationale for the move in the January 28 Alert: “More Earnings, XPLR Infrastructure and Deepseek AI Fallout,” also posted on the Conrad’s Utility Investor website.

US-based utilities have always been the core of investment strategy at Conrad’s Utility Investor. More than one-third of the companies in the Utility Report Card coverage universe, however, are actually based outside the US. That includes seven Aggressive Holdings and four Conservative Holdings, one of which TC Energy (TSX: TRP, NYSE: TRP) is also a Top 10 DRIP. Two others—AES Corp (NYSE: AES) and Chevron Corp (NYSE: CVX)—are true multi-nationals.