Roger S. Conrad

A record two-dozen CUI Portfolio companies currently trade above my recommended entry points. That’s to be expected in an environment where investors are seeking safety and yield. And utility stocks offer the added bonus of earning most or all revenue in the US while realizing strong, reliable earnings growth from renewable energy, 5-G and other transforming technologies.

Just because someone is offering doesn’t necessarily mean anyone will buy. That’s the hard lesson for shareholders of retail energy marketer Just Energy Group (TSX: JE, NYSE: JE). The stock has lost nearly -70 percent of its value since management announced a “strategic review” due to “outside interest” in early June.

From the time Thomas Edison threw the first switch and Alexander Graham Bell completed the first phone call, essential services companies have been on a relentless quest for scale. And since such businesses rarely fail, the primary method has been mergers and acquisitions.

These days, it seems every major US energy project is at risk to dissonant state and federal rules, regulatory delays and court challenges to permits. In fact, US energy companies might be excused for thinking America’s true energy policy is no longer “all of the above” but none.

Despite good news, several essential services companies have seen a 10% drop so far in 2019. The reason: politics. Our view for some of them is investors are over-estimating risks and underpricing their strengths.

Few sectors have dealt as much pain to unwary yield seekers over the past decade as communications. Here's the rundown on the weakest of the herd.

A baker’s dozen Portfolio companies hadn’t reported second quarter earnings when the August CUI issue went to post. In this special report, I wrap up their highlights, outlooks and what to do now.

Roger Conrad will host an online chat for Conrad's Utility Investor subscribers on Aug. 20, 2019 at 2 PM Eastern time.

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.