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In 2023 Focus on High Quality and Cash

By Roger S. Conrad on Jan. 10, 2023

2022 was the worst year for the stock market since 2008. And bonds suffered their biggest losses since the 1980s. Nonetheless, for the third year in a row, the Dow Jones Utility Average launched a powerful Q4 rally, finishing with a 2.08 percent total return. And that in turn helped carry our Aggressive Holdings ahead 3.5 percent, Conservative Holdings 1.3 percent and Top 10 DRIPs 9.5 percent.

Every January feature article highlights the top picks and pans by sector for the coming year, as well as the past 12-month’s best and worst performers.

Rising Interest Rates and the Debt Issue

By Roger S. Conrad on Dec. 12, 2022

Sticking to long-term guidance in face of severe near-term headwinds: That’s the difference maker for investor returns in utilities and essential services stocks this year. And it’s certain to be once again in 2023.

The greatest challenge is the most dramatic increase in interest rates since the 1980s. Debt is an indispensable pillar of financing for capital-intensive sectors like power, communications and water. And even solidly investment grade companies like WEC Energy (NYSE: WEC) have seen their cost of short-term debt increase as much as 350 basis points since the beginning of the year.

Solid Earnings Drive Strong Returns

By Roger S. Conrad on Nov. 14, 2022

Q3 numbers and guidance updates are almost all in. And rarely if ever have I seen results so immediately consequential for utilities and essential service stocks—as investors ascertain whether business growth plans will withstand headwinds from inflation, rising interest rates and a potentially severe recession.

The 42 Utility Report Card companies raising guidance have answered any questions about their strength for now. And their stocks have staged a big recovery rally from October lows. That includes several companies that faced extreme doubt going into reporting season, notably Aggressive Focus stock AT&T Inc (NYSE: T) and Hannon Armstrong Sustainable Infrastructure (NYSE: HASI).

Income Stocks in a Sell Everything Moment

By Roger S. Conrad on Oct. 10, 2022

The income stock selloff that began in mid-September has picked up steam this month. The Dow Jones Utility Average is now underwater by –9.42 percent year-to-date including dividends, and nearly -19 percent since almost hitting a new all-time high last month.

That’s for sure a massive outperformance of the S&P 500, which has resumed its year-long slide and is down almost -24 percent for 2022. And with the exception of oil and gas stocks, utilities are also well ahead of almost everything else in the income investing universe, particularly bonds with the 10-year Treasury note yield again pushing towards 4 percent.

Utilities are Bear Market Champions So Far

By Roger S. Conrad on Sep. 8, 2022

Stocks’ summer rally swung into reverse starting mid-August. And with the Federal Reserve pushing hard against stubbornly high inflation, it’s unlikely we’ve seen maximum damage or duration of what’s looking more and more like a real bear market.

Among the very few pockets of strength are regulated utilities. Even as the S&P 500 is again at a -17 percent year-to-date loss and income benchmark iShares Select Dividend ETF is in the red by -1.6 percent, the Dow Jones Utility Average is well in the black with a 5.66 percent total return.

Utility Values: Holding Guidance is the Key

By Roger S. Conrad on Aug. 8, 2022

The Dow Jones Utility Average has returned roughly 6 percent year to date. That compares with a -12 percent decline for the S&P 500, even after the past month’s torrid rally. Re-shoring of investment to the US, growing popularity of domestic businesses, low relative valuations and utilities’ well-earned reputation for resilience are four good reasons for outperformance. And as the feature article highlights, benefits from the Inflation Reduction Act of 2022 are a solid fifth.

Top Quality Utilities: Your Antidote for Rising Recession Risk

By Roger S. Conrad on Jul. 11, 2022

Earlier this month, a prominent Wall Street firm noted retail investors aren’t buying stock market dips, for the first time in quite a while. That’s absolutely understandable with the S&P 500 underwater nearly -20 percent so far in 2022, and many of last year’s high-tech favorites much deeper in the red. Utilities and essential services stocks too have had their share of ups and downs. But despite a great deal of uncharacteristic volatility, the Dow Jones Utility Average is still slightly in the green year-to-date, including a basically flat performance since the June issue of CUI posted.

When the Bear’s Ravaging the Averages, Look to Best in Class Stocks

By Roger S. Conrad on Jun. 10, 2022

Jagged daily volatility has become the rule for stocks this spring, including dividend payers backed by the steadiest of businesses. That’s historically been a classic sign the market has entered a bearish phase.

But if you have the courage, energy and wisdom to pick your own stocks, it’s hardly a sign to head for the hills. In fact, opportunities abound for both buying low and selling high.

Inflation Shapes Performance In a Still Pricey Stock Market

By Roger S. Conrad on May. 9, 2022
The S&P 500 is down more than -13 percent year-to-date, as inflation worries have begun to morph into recession fears. But despite jagged volatility, the Dow Jones Utility Average remains in the black for 2022. In fact, 18 CUI Portfolio stocks are still priced above maximum recommended entry points, with Chevron Corp (NYSE: CVX) in partial profit taking territory.

Utilities are Popular Again, Here’s How to Take Advantage

By Roger S. Conrad on Apr. 11, 2022

The Federal Reserve is getting serious about reining in inflation. And the kind of big money that never rests for long has apparently decided US utility stocks are an ideal haven.

The happy result: After lagging the past couple years, the Dow Jones Utility Average has pushed out to a 10 percent year-to-date return. That’s even as the S&P 500 has retreated -5.5 percent and the Nasdaq 100 is down -12 percent. 



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 b