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.
A growing, capital-intensive business must regularly be fed with sales of debt and equity. Investors almost invariably fear such offerings as either dilutive or incurring more debt. But the lowest corporate borrowing rates in a generation have enabled companies to cut interest expenses with new debt offerings, eliminating their near-term exposure to rising rates. This week, we look at six Conrad's Utility Investor Portfolio holdings that have had recent offerings.
There’s nothing like a convincing rally to silence bears. And utilities are still the best- performing sector this year, with the S&P 500 Utilities Index beating the S&P 500 by better than a 2-to-1 margin.
Our three Conrad’s Utility Investor Portfolios—Aggressive Income, Conservative Income and Top 10 DRIPs--have fared well, adding to solid 2013 gains. The biggest winners have been companies that analysts shunned earlier in the year; for example, formerly out of favor Exelon Corp (NYSE: EXC) has returned almost 40 percent.
Outperformance, however, should never be taken for granted. Even in sectors as stable as essential services, the high and mighty frequently change places with the outcasts.
Hedgeye and Barron's called Kinder Morgan Energy Partners LP and its general partner, Kinder Morgan Inc. a "house of cards." Richard Kinder, the partnership's Chairman and CEO, responded, "I'll buy, you sell and we'll see who's right." Since then, this diversified owner of fee-based midstream assets has beaten its own first-quarter guidance, turning the market and burning the critics.
Our Portfolios are a mixed bag in terms of their underlying businesses and growth drivers. But our holdings are on track for solid earnings and dividend growth over the long haul. These names don’t respond uniformly to changing business conditions or short-term market moves so diversification is key to reduce volatility.
Dividend-paying stocks aren’t bond substitutes and never will be. Any investor who has sold these equities because of rising interest rates has lost big over the past 22 years. Those who do so now are playing with the same fire and, inevitably, will be badly burned.
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.