Since the start of 2022, the US Dollar Index is up about 15 percent to its highest level since 2001. That’s the result of determined inflation-fighting by the US Federal Reserve in the context of a still relatively strong US economy.
Uncertainty is the order of the day for the economy and investment markets. But ironically, with Q1 results and guidance updates all in, 12 to 18 month dividend risk continues to drop for the essential services companies tracked in the Utility Report Card.
If all management teams live within their means, there would be no need for an Endangered Dividends List. But reality is businesses take risks in good times that come back to burn them in bad ones. And the five companies on the EDL reporting Q1 results so far still have some very real vulnerability.
Korea Electric Power (Korea: 015760, NYSE: KEP) still hasn’t declared an annual dividend for payment next month. But the company is effectively priced for a zero payout, after announcing a record operating loss for 2021 and guidance for an even larger one this year.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
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Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.