Feature Article

NextEra Energy Partners (NYSE: NEP) joined our Conservative Holdings in May 2016. Since then, its dividend has increased by 122 percent. That includes 15.1 percent over the last 12 months, which pushed the yield on our initial investment to nearly 10 percent.

Inflation is back. How long it stays at the official January rate of 7.5 percent depends on myriad, shifting factors. But so long as it’s here, it’s imperative to seek some level of protection against the relentless, corrosive impact on wealth.

Renewable energy stocks went from riches to rags last year. And the downside momentum has continued in 2022, as investor worries have built around the potential negative impact of supply chain disruption, rising commodity costs, a tight labor market and the stalling of President Biden’s “Build Back Better” plan.

Real wealth is built over years, not months. And only by buying and patiently holding shares of financially healthy, growing companies can we realize the full benefit of a rising stream of dividends and the capital gains that flow with it.

Utility stocks are historically strong Q4 performers. And 2021 was no exception, with the 13.1 percent return by the Dow Jones Utility Average turning a weak year into a respectable showing. It was by no means a universal. The table “2021 Best and Worst” shows a gap of 172.7 percentage points between top performer Huaneng Power (Hong Kong: 902, NYSE: HNP) and the worst Just Energy Group (TSX: JE, OTC: JENCQ).