Investors shouldn’t automatically assume that dividend-paying equities are inherently safer than tech stocks or other cyclical fare. When an income-oriented stock cuts or eliminates its dividend, investors not only suffer a diminution of income but also a significant loss of principal during the subsequent selloff. Understanding a company’s underlying business and its growth prospects are essential to separating the winners from the losers.
Utility stocks might be due for a pullback, but the risks that rising interest rates pose to the sector are overblown.
What telecom names boast the safest dividends? The industry’s Big Four take the title, hands down. Among the smaller fry, Consolidated Communications (NSDQ: CNSL) is in the best shape--one of the reasons short interest in the stock is lower than its peers that trade with reasonable liquidity.
The pullback in master limited partnerships after the Federal Reserve announced plans to scale back quantitative easing gave investors an opportunity to buy Kinder Morgan Energy Partners LP (NYSE: KMP) at a favorable price.
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.