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Roger S. Conrad
Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth.
Roger built his reputation with Utility Forecaster, a publication he founded more than 20 years ago that The Hulbert Financial Digest routinely ranked as one of the best investment newsletters. He’s also a sought-after expert on master limited partnerships (MLP) and former Canadian royalty trusts.
In April 2013, Roger reunited with his long-time friend and colleague, Elliott Gue, becoming co-editor of Energy & Income Advisor, a semimonthly online newsletter that’s dedicated to uncovering the most profitable opportunities in the energy sector.
Although the masthead may have changed, readers can count on Roger to deliver the same high-quality analysis and rational assessment of the best dividend-paying utilities, MLPs and dividend-paying Canadian energy names.
Articles
Utilities’ Lackluster Momentum in 2024 Means 2nd Half Opportunity
By
Roger S. Conrad on
Jul. 8, 2024
After an up and down month, the Dow Jones Utility Average’s year-to-date return is now just 5 percent. That’s still a percentage point better than the Dow Jones’ Select Dividend Index. But utilities are now well behind the Nasdaq 100’s 21.7 percent and the S&P 500 at 17.5 percent.
Interest rates remain the key driver of utility stock returns. And with money market funds yielding north of 5 percent and the Federal Reserve still not pivoting to lower rates, price momentum is against us.
Enel SpA: Low Debt, Robust Renewables and a Nuclear Play
By
Roger S. Conrad on
Jul. 8, 2024
Italy closed the last of its operating nuclear reactors in 1990, following a 1987 post-Chernobyl referendum. But earlier this year, Enel SpA (Italy: ENEL, OTC: ENLAY) and Ansaldo Nucleare forged an agreement to develop new nuclear reactors, with support of the country’s Ministry of Environment and Energy Security.
Enel’s Endesa unit operates several reactors in Spain, which at this point has a plan to phase out nuclear energy by 2035. But like Italy, the country is now reconsidering its options. And as the largest power producer in both countries, the company is poised to capture what business emerges.
Entergy Corp: Conservative and Cashing in on Nuclear’s AI Connection
By
Roger S. Conrad on
Jul. 8, 2024
Conservative Holding Entergy Corp (NYSE: ETR) has been a fully regulated utility for more than two years—divesting its Palisades nuclear plant in Michigan in June 2022 to Holtec International.
The result is reduced business risk, a stronger balance sheet and exclusive management focus on growing regulated rate base in the utility’s four-state territory. Annual industrial load growth is the strongest in America averaging 8-9 percent annually. And it’s likely to accelerate the next few years, spurred by “onshoring” to the US Gulf Coast, electrification, artificial intelligence-enhanced data centers (5-10 gigawatts demand projected) and rapid growth of LNG export infrastructure.
A Solid First Half but Better Ahead
By
Roger S. Conrad on
Jul. 8, 2024
Utility stocks had their moments in first half 2024. But with the Federal Reserve sticking to a “higher for longer” interest rate policy, it’s little surprise the Dow Jones Utility Average finished the first six months of the year well behind broader stock market averages, lagging the S&P 500 by 12.5 percentage points.
Boosted mainly by strong performance of four stocks—Constellation Energy (NYSE: CEG), MDU Resources (NYSE: MDU), NextEra Energy (NYSE: NEE) and Vistra Corp (NYSE: VST)—the Conrad’s Utility Investor model portfolios did somewhat better.
Why NextEra Energy Partners Won’t Cut
By
Roger S. Conrad on
Jul. 8, 2024
Most companies view dividend cuts only as a last resort. That’s for good reason.
Investors rightly view slashing payouts as management breaking faith, even when there are very good reasons. Just ask Kinder Morgan Inc (NYSE: KMI) founder and largest shareholder Richard Kinder. His stock sells for half what it did in late 2015 before the midstream company cut dividends by 75 percent, despite a 130 percent increase since.
Picks and Pans for Second Half 2024
By
Roger S. Conrad on
Jul. 8, 2024
Nuclear power has officially joined cutting debt, M&A and artificial intelligence as primary drivers of utility and essential services stock returns in 2024. In contrast, high debt and renewable energy have remained broadly unpopular as themes in the first half of the year, as they were in 2023.
As my table “Best and Worst of 2024” highlights, divergence between individual company performance in the Conrad’s Utility Investor coverage universe remains quite wide. The best first half performer by far was Vistra Energy (NYSE: VST) with a 124.34 percent total return. The worst was FuelCell Energy (NSDQ: FCEL), where survival-motivated share dilution resulted in a -60.08 percent loss.
Algonquin’s 7.75% Preferred Stock Matures: We’re Keeping the Common
By
Roger S. Conrad on
Jun. 18, 2024
Utility M&A Heats Up But Play the Long Game
By
Roger S. Conrad on
Jun. 10, 2024
Utility mergers and acquisitions are heating up again. But utility stocks’ spring momentum has at least temporarily cooled. The Dow Jones Utility Average is still up solidly with a 6.3 percent year-to-date return, much better than most dividend paying sectors. But utilities are again lagging returns of 13.3 percent for the Nasdaq 100 and 12.8 percent for the S&P 500. The reason for the reversal: Yet another shift in investor expectations for Federal Reserve policy. And the consensus now is we’ll see few if any rate cuts this year.
MODEL PORTFOLIOS & RATINGS
Aggressive Income Portfolio
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Conservative Income Portfolio
Harness the tried and true wealth-building power of rising dividends.
Top 10 DRIPs
Nothing compounds wealth like reinvesting a rising stream of dividends.
Endangered Dividends List
Warning: Falling Dividends.
Utility Report Card
Roger's current take and vital statistics on more than 200 essential-services stocks.
Conrad's Utility Investor
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