Roger S. Conrad

Utility investors shouldn't lose any sleep over Scotland's push for independence.

By the end of 2016, energy companies will lock in the lion’s share of an estimated $600 billion in contracts for new infrastructure to process and transport surging US oil and gas production to market.   This construction boom creates an unprecedented opportunity for well positioned energy companies such as Dominion Resources (NYSE: D), which recently proposed a 550-mile pipeline to carry cheap shale gas to energy-hungry North Carolina and Virginia. (See Five Big Deals to Build Wealth.)   The pipeline project has stoked the usual opposition from environmentalists and concerned citizens who, by reflect, don’t want any energy-related infrastructure in their backyards.   Ironically, utilities have answered environmentalists’ call for more renewable energy, increasing wind generation from 6 billion to 168 billion kilowatt-hours between 2000 and 2013 and solar-power capacity by 70 percent since 2013. That’s a clear demonstration of how the best US utilities have walked both sides of the street in the debate over fossil fuels and renewable energy. As long as these companies earn a fair return on investment, they’ll continue to reward us with rising earnings and dividends.

West Texas Intermediate crude oil has slipped to $93 a barrel, its lowest price in two years, and producers in North Dakota’s prolific Bakken Shale part with their output for less than $88 a barrel. But not even $70 oil would derail growth for our favorite bet on the Bakken Shale.

Historically, propane distributors’ profits have been challenged by unpredictable weather, volatile wholesale prices, competition from natural gas and an extremely dispersed customer base. In the past, these obstacles translated into erratic returns for shareholders. The industry’s solution: Increased scale through consolidation. Propane distributors—mostly master limited partnerships (MLP)—continue to consolidate, expanding their geographic reach and improving their purchasing power. These efforts have resulted in steadier sales and boosted margins.

Regulators in California and in France bear down on troubled utilities, while two overseas telecoms move closer to finalizing their merger.

Although we prefer to buy and hold to build wealth over the long haul, we’re not averse to locking a big gain from time to time on momentum-driven names—especially in a five-year-old bull market.

We book an almost 55 percent gain on Consolidated Communications, highlight our best buys in the current market and explore some of the biggest trends driving returns in the essential-services space.

Canadian REITs trade at reasonable valuations, offer superior yields and generally operate more conservatively than their US peers.

Five of our Portfolio holdings have closed or announced deals that figure to be big-time profit boosters.

The Environmental Protection Agency's (EPA) proposed rules on carbon dioxide (CO2) emissions create dangers and opportunities for investors in utility stocks.