Roger S. Conrad

By and large, our favorite utilities and other essential-service providers have announced solid first-quarter results, while the market’s low expectations provides a blessing in disguise.

Rising dividends are the essential fuel for higher stock prices. And nothing is more critical for payout growth than healthy, expanding businesses.

America’s leading wireless company grew its earnings per share by 23.5 percent from year-ago levels, expanded its wireless margins to 52.1 percent from 50.4 percent, increased its revenue per customer by 6.3 percent and generated $2.95 billion in free cash flow. 

Not one of the hundreds of regulated utility mergers over the past century has failed to create a stronger, healthier company. Despite skepticism in some quarters, Exelon Corp’s (NYSE: EXC) $6.8 billion purchase of Pepco Holdings (NYSE: POM) is also set for success.

Half a dozen European utilities and telecoms cut dividends in March. The happy count from April: Zero. Several companies this month even graduated from the Endangered Dividends List.

Few companies attract as much attention when they report quarterly earnings as Telecom’s Big Two: AT&T Inc (NYSE: T) and arch rival Verizon Communications (NYSE: VZ). And the past week has been no exception.

You’d be hard-pressed to beat AT&T for steady growth and reliable income--especially in a market where too many are blindly bobbing for Apples.

Uncle Sam is kicking the can down the road again on the Keystone XL Pipeline. In a non-decision that should have surprised no one, the US State Department delayed a final ruling on the $5.4 billion project.

The aftermath of a dividend cut is always an emotional time, especially for investors who own the stock in question. But if you can keep a level head and evaluate the company’s proposed turnaround effort, you can find deep-value plays poised for big returns—a rarity in a five-year-old bull market.

Investors who focus on quality won't have as much to fear if the bear market comes out of hibernation.