Roger S. Conrad

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.

Buying stocks of strong companies at the lowest possible prices: That’s been my primary strategy thus far for the Conrad’s Utility Investor Portfolios.

This month, I’m adding two stocks to the Conservative Holdings.

With large financial institutions and exchange-traded funds (ETFs) dominating daily trading, markets are as volatile as ever.

Fortunately, the key to success in utilities and essential services is the same as it’s been for more than a century: Spotting where investment will earn a fair return, and following the money to a rising stream of dividends.

As goes January, so goes the year. That old Wall Street adage doesn’t bode well for most of the stock market.

Last November, I advised income investors to favor AT&T (NYSE: T) a traditional dividend paying stock, over shares of its iPhone partner Apple Inc (NSDQ: AAPL).

Fourth quarter and full-year earnings normally dominate the news this time of year. And rightly so: They’re what ultimately shape shareholder returns.