Roger S. Conrad

Discipline, consistency and hard work don’t always guarantee success. But they're the necessary foundation of every winning investment strategy.

Utility stocks might be due for a pullback, but the risks that rising interest rates pose to the sector are overblown.

Nothing destroys shareholder value like a dividend cut. Not only do you lose a portion of your monthly income, but a falling share price can also saddle you with significant capital losses. These are the dividend-paying stocks that are most dangerous to your wealth.

Stepped up targeting of dividend-paying stocks, runaway momentum widening the gap between loved and unloved stocks, and shifting odds of recovery in essential service company investment: These three trends have increasingly shaped returns since spring. And odds are good they’ll continue to the rest of the year.

What telecom names boast the safest dividends? The industry’s Big Four take the title, hands down. Among the smaller fry, Consolidated Communications (NSDQ: CNSL) is in the best shape--one of the reasons short interest in the stock is lower than its peers that trade with reasonable liquidity. 

Utilities and essential services stocks are known for their long-run stability—both all-weather business strength and low share price volatility. But even they pale before the unmatched reliability of utility bonds.

The recent pullback in shares of Southern Company (NYSE: SO) represents a buying opportunity.

The pullback in master limited partnerships after the Federal Reserve announced plans to scale back quantitative easing gave investors an opportunity to buy Kinder Morgan Energy Partners LP (NYSE: KMP) at a favorable price.

I had a chance to sit down with Conrad’s Utility Investor Managing Editor Gregg Early and we had a wide-ranging conversation about some of the big issues in the essential services industry today as well some of the hot topics of the day.

The book is now almost closed on calendar first quarter 2013 earnings for my 45 Target List stocks. Utilities and other essential services stocks had a big run to start 2013. As a result, several target list companies have surged well beyond what I’d pay for them. Have a look at my current advice.