I first became acquainted with Algonquin Power & Utilities (NYSE: AQN) back in the early ‘00s. Then it was a small power plant developer growing rapidly by taking advantage of the Canadian income trust investment boom.
For nearly eight years as a Conservative Holding, Brookfield Renewable Partners (TSX: BEP-U, NYSE: BEP) has reliably built cash flow from a growing global portfolio of contracted hydro, wind and solar assets. Dividends have increased nearly 60 percent since my initial recommendation and face few hurdles to 5 to 8 percent annual growth.
From range limits to battery costs, electric vehicles have a long way to go before they rule America’s roads. And even the leading name in EV manufacturing Tesla Inc (NSDQ: TSLA) still relies on tax credits and outside capital to fund operations.
In the past year, BCE Inc (TSX: BCE, NYSE: BCE) took hits from pandemic fallout and government pressure to cut broadband and wireless rates. And though less exposed than archrival Telus Inc (TSX: T, NYSE: TU), the company was forced to overhaul 5G strategy when equipment maker Huawei became persona non grata.
Locked in 6 to 8 percent annual earnings growth secured by steady rate base expansion; Strong regulatory relations in 8 southern states, particularly Texas; A dividend that’s nearly doubled over the past decade and is still covered better than 2-to-1 by profits; A secure A-rated balance sheet and operating metrics routinely at the top for natural gas distributors.
Conservative Holding Avangrid Inc (NYSE: AGR) hasn’t raised its dividend since July 2018. Not surprisingly, its returns have since lagged the Dow Jones Utility Average by more than 25 percentage points.
Two major developments in the past month promise a favorable reversal of fortune, even as shares have dropped roughly 10 percent to an attractive entry point.
“Keep it simple” is a best practices business maxim that’s far easier to preach than practice. But when a company consistently sticks to it, superior results follow—as they have for nearly 20 years at Michigan electric and gas utility CMS Energy (NYSE: CMS).
Barely a century ago, Americans enjoyed plentiful, clean and practically free drinking water. Now ensuring safe supplies and treating waste is an increasingly essential and rapidly growing $200 billion plus global market. Among the surest beneficiaries: The handful of US investor owned utilities, headlined by Conservative Holding Essential Utilities (NYSE: WTRG).
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.