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.
Utility stocks’ key attraction has always been generous dividends. Yet nearly half the companies tracked in our Utility Report Card yield less than 3 percent, and 20 pay less than 2 percent.
Conversely, less than 10 have dividends as high as 8 percent. And most of those should be avoided for safety’s sake.
I’m happy to say it’s still possible to dig safe, high yields from this increasingly rocky ground. That’s the subject of our Feature article.
US/China trade turmoil, rising political tensions in Hong Kong and erratic Australian regulation have driven down shares of CLP Holdings (Hong Kong: 2, OTC: CLPHY) below our buy target of USD11. Now’s the time to pick up shares of this Aggressive Holding.
In summer 2013, Exelon Corp (NYSE: EXC) cut its quarterly payout from 52.5 cents to 31 cents per share. The 41 percent reduction was a tacit admission that no US carbon tax would save the nation’s largest nuclear power fleet from falling wholesale electricity prices.
When this issue went to post, not every company in our Utility Report Card coverage universe or model portfolios had released its second quarter numbers. But there’s enough available information to discern several key takeaways.
First, even in these essential service businesses, there’s evidence the US economy has lost some steam. One place that’s shown up is industrial sales of the country’s largest electric utilities.
UK-based integrated energy company Centrica Plc (London: CNA, OTC: CPYYY) will cut its semi-annual dividend payable in November to GBP1.50 per share, from the year ago rate of GBP3.60. Management also announced a reduction in the “Final” dividend to be declared in February from GBP8.40 to GBP3.50 per share.
How low can interest rates go? The answer likely depends on how much the US economy slows in coming months and how aggressively the Federal Reserve responds. The benchmark 10-year Treasury note yield still hasn’t fallen as far as it did in summer 2016, or even in July 2012 when Washington was playing chicken with the possibility of a first ever US government default.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Harness the tried and true wealth-building power of rising dividends.
Nothing compounds wealth like reinvesting a rising stream of dividends.
Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.