Exhaustive reviews, impossible public interest standards and no guarantee of eventual success: That’s the consensus outlook for mergers and acquisitions activity under the Biden Administration. Nonetheless, utility M&A is alive and well.
When a monthly power bill hits $1,700 plus, people are bound to wonder if there’s a better way to run an electricity market.
Single digit temperatures, record snowfall, millions of utility customers without service, nearly one-third of the state’s power generating capacity shut down and spiking electricity prices: That’s the damage so far from the Great Texas Power Crisis of 2021, which continues wreak havoc across the Lone Star State.
Writing under the famous pen name Mark Twain, Samuel Clemens coined the phrase “history doesn’t repeat itself, but it often rhymes.”
I’m not the first to apply that bit of country wisdom to investing. But it’s always worth revisiting in the aftermath of extraordinary market events.
Gas companies strengthened their case during pandemic-wracked 2020 by demonstrating extremely stable economics, paying generous dividends backed by ultra-secure and growing cash flows, and still remaining small enough to have perennial takeover appeal. Those strengths promise to make natural gas distribution a hot commodity again in 2021.
What’s a well-run fiber broadband network worth these days?
From all indications, 2020 has been the worst wildfire season in California’s history. And the state is hardly alone in its misery, as an unprecedented combination of wind gusts and dry conditions have also inflicted record damages throughout the West and Rocky Mountain states.
The top two companies that dominate this essential service industry have combined market capitalization of $440 billion and annual revenue of $300 billion plus, but still trade for an average of just 10 times expected 2020 earnings. They clearly suffer from the burden of low expectations.
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.
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Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.