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  • Roger S. Conrad

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth.

Roger built his reputation with Utility Forecaster, a publication he founded more than 20 years ago that The Hulbert Financial Digest routinely ranked as one of the best investment newsletters. He’s also a sought-after expert on master limited partnerships (MLP) and former Canadian royalty trusts.

In April 2013, Roger reunited with his long-time friend and colleague, Elliott Gue, becoming co-editor of Energy & Income Advisor, a semimonthly online newsletter that’s dedicated to uncovering the most profitable opportunities in the energy sector.

Although the masthead may have changed, readers can count on Roger to deliver the same high-quality analysis and rational assessment of the best dividend-paying utilities, MLPs and dividend-paying Canadian energy names.

Articles

With Utility Stocks Running It’s Time to Get Tactical

By Roger S. Conrad on Sep. 9, 2024

Not every big utility stock hit a 52-week high in the past month. But with the Dow Jones Utility Average up nearly 20 percent year to date, a baker’s dozen Portfolio stocks sell for more than their highest recommended entry points. That’s a massive turnaround from earlier this year. Consistent, strong earnings have been one factor: 26 Utility Report Card companies raised guidance after releasing Q2 results.

And only one of the 8 that cut was actually a regulated utility, weather-impacted gas distribution utility Spire Inc (NYSE: SR). The health and growth of underlying businesses always drives long-term investor returns. As the Portfolio discussion highlights, Conrad’s Utility Investor recommendations are on the right track.

Verizon Communications: Expanding Dividends and Dominance of US Communications

By Roger S. Conrad on Sep. 9, 2024

In 1996, US telecommunications deregulation broke up the Baby Bell monopoly. But contrary to the best efforts of regulators, politicians and especially competitors, market share consolidation has accelerated ever since. Now it’s the end game. AT&T Inc (NYSE: T), T-Mobile US (NSDQ: TMUS) and Verizon Communications (NYSE: VZ) increasingly dominate the still growing and rapidly evolving market. And the battle has shifted to convergence, as the Big 3 combine fiber broadband and 5G wireless networks to better hold onto customers, boost revenue and cut costs.

AES Corp: Misunderstood and Mispriced

By Roger S. Conrad on Sep. 9, 2024

Fool me once shame on you, but fool me twice shame on me: That seems to be what many think of AES Corp (NYSE: AES), selling for 8.2 times expected next 12 months earnings and yielding north of 4 percent. In contrast, Wall Street is positive, with 10 research houses tracked by Bloomberg Intelligence rating buy versus 3 holds and no sells. And management raised 2024 earnings and EBITDA guidance in early August, reaffirming expected annual growth of 7 to 9 percent for earnings and 5 to 7 percent for EBITDA through 2027.

Don’t Chase the Rally, Shop for Value

By Roger S. Conrad on Sep. 9, 2024

Big utility stocks stayed on a winning streak last month. The Dow Jones Utility Average is now up nearly 20 percent year-to-date. That’s about 10 percentage points better than the Big Tech stocks in the Nasdaq 100. And it’s out ahead of the S&P 500’s 14.5 percent. Despite the rally, utility stocks also remain historically under owned. The biggest in the S&P 500NextEra Energy (NYSE: NEE)—has crept up to #52 from #55 a month ago. But it’s less than a third of a percentage point of the overall index. And you have to go down to 101th place to find another utility, Southern Company (NYSE: SO) at just 21 basis points of the index.

Algonquin Cuts, But It Should Be the Last Time

By Roger S. Conrad on Sep. 9, 2024

Regulated utilities aren’t immune from stumbles. And Algonquin Power & Utilities (TSX: AQN, NYSE: AQN) negatively surprised me in early August, with its second dividend cut in 18 months. When a company reduces guidance multiple times in succession, it’s clear management did not fully anticipate business headwinds. And usually the best course for investors is to move on.

Rags to Riches: The Never-Ending Utility Story

By Roger S. Conrad on Sep. 9, 2024

In early 1981, General Public Utilities—predecessor company of FirstEnergy Corp (NYSE: FE)—sold for less than $2 a share. The Pennsylvania electric utility faced an uncertain future in the wake of the 1979 nuclear accident at its Three Mile Island Unit 2 reactor. And few would go near the stock, especially the investors who had ridden it down with the incident.

Rotation in Progress but Quality Still King

By Roger S. Conrad on Aug. 5, 2024

The nascent trends I highlighted in the July 17 Alert “About that Volatility” have picked up steam since. That includes the likelihood of a Federal Reserve rate cut, as economic growth tapers and inflation moderates. Utilities and Big Tech stocks have noticeably traded places in the past month. The Dow Jones Utility Average is now ahead by 17.6 percent year-to-date, outpacing the suddenly weakening S&P 500 at 13 percent and the Nasdaq 100’s 10 percent. I’ve said for a while that interest rates were the key to utility stock prices short-term. And for at least the past few weeks, the trend has been our friend. But I see two key reasons to be cautious.

BCE Inc: The Yield’s Not Nearly As Risky as It Appears

By Roger S. Conrad on Aug. 5, 2024
When leading Canadian telecom BCE Inc (TSX: BCE, NYSE: BCE) released initial 2024 guidance, many took it as evidence restrictive regulation and escalating competition were undermining growth and dividends. And the stock has generally underperformed since. Nonetheless last week, for the second consecutive quarter, management held firm on guidance in what it again referred to as a “transformational year.” Free cash flow improved by 8 percent to CAD1.1 billion, or CAD200 million after dividends. And the company posted its second best retail Internet net subscriber additions since 2007 and most wireless customer additions in "almost two years" (up 4.4 percent).

MODEL PORTFOLIOS & RATINGS

ABOUT ROGER CONRAD

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b