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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 Re-Rating in Progress
By
Roger S. Conrad on
Dec. 11, 2023
There’s just three weeks left until New Year’s Eve. And the Dow Jones Utility Average is still down –6.2 percent in 2023. That leaves the sector on track for its worst performance since 2008, barring a powerful end-year rally,—though that year’s -27.8 percent demolishing is in a whole different league.
Since early October, however, the DJUA is up 11.5 percent, topping even the robust returns from the S&P 500 and the big technology stock Nasdaq 100. And the biggest winners the past two months have been the stocks that were beaten up the most through September, for example AES Corp (NYSE: AES) with an 60 percent-plus return.
My view: We’re in the early stages of a utility sector re-rating and stock price recovery.
WEC Energy Group: Best in Class No Longer at a Premium Price
By
Roger S. Conrad on
Dec. 11, 2023
For most of the 9-plus years it’s been a Conservative Holding, WEC Group (NYSE: WEC) has been tough to buy at a good price. That’s not the case now with the stock yielding nearly 4 percent, and the upper Midwest utility on track for a 7 percent dividend boost later this week.
Much of WEC’s weakness this year is due to generalized utility sector selling. But the company has also seen its historic premium valuations compressed a bit: The forward earnings multiple of 18.5 times is the lowest in more than 8 years, and the stock’s yield is approaching a 20-year high—when the dividend was roughly one-eighth of what it is now.
Hannon Armstrong Sustainable: It’s All About the Spread
By
Roger S. Conrad on
Dec. 11, 2023
The first time I added shares of Hannon Armstrong Sustainable Infrastructure (NYSE: HASI) to the Aggressive Holdings, we cashed out with a return of about 300 percent.
My attempt at a reprise has so far been somewhat less successful. Hannon has met management’s guidance for 10-13 percent annual distributable earnings growth, as well as target yearly 5 to 8 percent dividend increases. The dividend itself is 13 percent higher than when we entered in early 2022, with another boost ahead for February.
SSE Cuts: That Makes Six for 2023
By
Roger S. Conrad on
Dec. 11, 2023
UK electric utility SSE Plc (London: SSE, OTC: SSEZY) has “rebased” its twice-annual dividend to a new rate of 60 pence, starting with the March 2024 payment. That’s roughly -38 percent less than the previous annualized rate of 96.7 pence. As noted in my Utility Report Card comments, management stuck to its previous full-year FY2024 (end March 31) earnings guidance range, with a mid-point of GBP1.50 per share. That was despite what appeared to be disappointing results for the first half (end September 30), as adjusted EPS sank by roughly -11 percent.
Rotation or Recession, We’re Ready
By
Roger S. Conrad on
Dec. 11, 2023
Will a massive sector rotation propel market averages to new heights in 2024? Or will a bursting of Big Tech’s valuation bubble combine with a weakening economy and relentless upward pressure on interest rates to send the autumn recovery into full reverse? Either way, the stocks in the CUI Aggressive, Conservative and Top 10 Holdings portfolios are ready. That follows the release of strong Q3 results and guidance updates that frankly seemed to shock many.
Big Yield Hunting in a High(er) Rate World
By
Roger S. Conrad on
Dec. 11, 2023
When investment markets get roiled, most people assume the future holds more of the same. And so it is with the nearly unanimous consensus forecast of “higher for longer” interest rates. I still see a decent chance the Federal Reserve will raise the benchmark Fed Funds rate at least one more time this cycle, to bring its benchmark for inflation back to a long-term target rate of 2 percent. But so far as borrowing costs are concerned, the damage is done.
Top Takeaways from EEI 2023
By
Roger S. Conrad on
Nov. 28, 2023
After nearly two decades of flat demand, US utilities are already reporting substantial weather-adjusted increases. That’s from digitization of industries that require massive data collection and processing capabilities.
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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