Roger S. Conrad

After a robust decade and a half following 1996 deregulation, large US telecom M&A had virtually evaporated. The exception: T-Mobile US’ (NSDQ: TMUS) merger with Sprint, which closed April 1, 2020.

It’s been a little more than 141 years since Thomas Edison threw the first switch on his famous light bulb. What at one time were literally thousands of electric operating companies have merged into just a few dozen of consequence. And not one deal failed to create a financially stronger utility, a record no other industry can match.

From shuttered stores and offices to surging unpaid rents, US landlords have suffered a body blow this year. And there’s more turbulence ahead, from short-term cash shortfalls to big changes in tenant preferences. But American property is hardly down for the count.

On a 7-2 vote, SCOTUS overturned the lower court ruling that had rejected U.S. Forest Service authority to allow the ACP to cross the Appalachian Trail. Their decision affirms that jurisdiction. Completing the 600-mile project to link natural gas from Appalachia to demand in the Carolinas and Virginia, however, is not a done deal.

In first half 2020, COVID-19 fallout triggered the sharpest global economic and stock market plunge on record. Now relaxing of pandemic control measures has raised hopes for an equally dramatic recovery the rest of the year.

China was first hit by the virus and first to take control of its spread. And while certainly not back at 100 percent, its economic rebound is picking up speed.

That’s not only good news for Aggressive Holdings China Mobile (HK: 941, NYSE: CHL) and CLP Holdings (HK: 2, OTC: CLPHY). It also bodes well for durability of green shoots we’re seeing in America, including signs of steadying power demand reported by Utility Report Card electric utilities.

This spring Centerpoint Energy (NYSE: CNP) cut its quarterly dividend in half. That followed a $155 million reduction in distributions from Enable Midstream Partners (NYSE: ENBL), of which the company owns 50 percent of the general partner and 53.7 percent of common units.

Conservative Holding Sempra Energy (NYSE: SRE) has traded as high as $162 and as low as $88 this year. That volatility contrasts sharply with the steady business performance of the diversified utility and midstream energy company, including the robust 8 percent dividend boost this spring.

Stocks’ recovery since late March looks a lot more like a “V” than it did a month ago. And after breaking through resistance this month, the S&P 500 is now just 6.3 percent from making a new all-time high.

Utility stocks have also perked up lately. As a group, they’ve lagged since mid-April. Nonetheless, we’ve seen some spectacular recoveries among Portfolio holdings.

May set records for S&P 500 dividend cuts, with 18 companies suspending and 5 others reducing. They were joined by 3 non-US essential services providers from our Utility Report Card coverage universe.

AusNet Services (ASX: AST, OTC: SAUNF) raised its semi-annual dividend for payment in June by 4.9 percent. But the Australian electricity distribution utility also issued guidance for a payout cut of -7 to -12 percent for the next 12 months.