Roger S. Conrad

Almost anything can affect stock prices in the near term. Long-term, earnings and dividend growth are what counts.

The uncertainty surrounding the cross-border leg of TransCanada Corp's Keystone XL pipeline hasn't diminished the company's growth prospects. We examine the investment opportunities behind the controversy.

You have questions; Roger Conrad has answers. Roger will host an exclusive Live Chat for subscribers on March 13, 2014, at 2:00 p.m. ET. This is your opportunity to ask questions about the latest developments in the utility sector.

One pipeline company rewards investors with a 70 percent total return the year after it restores regular distribution growth. The other’s unit price falls nearly in half after it guts its payout by more than 80 percent.

Nothing stirs up fear and uncertainty like a distribution cut. And in the energy midstream business, the news doesn’t often get as bad as it did with Boardwalk Pipeline Partners (NYSE: BWP) this week.

Not every buy and hold investor has the savvy and steady temperament to be as successful as Warren Buffett. Similarly, not every short seller is insightful and nimble enough to match Jim Chanos’ storied success.

Beware of falling dividends! These companies are at risk of cutting their quarterly payouts.

Not since 1987 have utility stocks failed to follow up a positive January with full year gains.

To a large extent, January’s move can be chalked up to a mood swing. A month ago, the emerging consensus was utility stocks were poor investments, doomed to suffer from rising interest rates, falling sales due to solar adoption and ultimately a revolt of regulators and customers.

The sudden retreat of emerging markets and their currencies has now taken that narrative off the front page. Rather, utilities are touted as a “hedge” against a repeat of the global market meltdown of 1997-98.

The investment media love a great story told from 30,000 feet. And it’s true that utility stocks were big winners during that crisis, even as the rest of the market cracked.

Current market action, however, is still nothing close to another 1997-98. In fact, there are already some signs of recovery from the recent damage, including the apparently stabilizing Australian dollar. As a result, by this time next month, investors are just as likely to be mesmerized by an altogether different “big story.”

That’s why I’m far more impressed by the strong fourth-quarter results posted by the utilities in my coverage universe..

In 2013, the Alerian MLP Index gained 27.6 percent. Energy Transfer Partners (NYSE: ETP) did much better at 43.4 percent, thanks to restoring regular quarterly distribution increases.

No US utility is better positioned to profit from America’s energy boom than Entergy Corp (NYSE: ETR). The company’s six electric utility units own and operate 22 gigawatts of power plants in Arkansas, Louisiana, Mississippi and Texas.