Feature Article

Verizon Communications (NYSE: VZ) was first to prove the potential of 4G wireless. So when rival T-Mobile US (NSDQ: TMUS)—Deutsche Telekom’s (Germany: DTE, OTC: DTEGY) US unit—appeared to take the lead rolling out 5G, many have assumed the company has passed the torch of industry leadership.

Since the July issue went to post, the Dow Jones Utility Average has generally trended higher. The result is the half-year return of less than 3 percent has grown to over 9 percent. One key reason: Solid Q2 results and strong guidance updates issued by the average’s 15 members. That includes this month’s Aggressive Focus stock AES Corp (NYSE: AES).

Conservative Holding Sempra Energy (NYSE: SRE) this week raised the mid-point of its 2021 earnings guidance range to $8.05 per share, a significant leap from the previous $7.80. That’s just one of the highlights from its June 29 Strategic Update and Financial Outlook.

The Aggressive Holdings returned an average of 7.95 percent in the first half of the 2021. Conservative Holdings came in at 5.28 percent, while Top 10 DRIPs did the best at 12.34 percent. The average return for all 41 stocks across the portfolios was 8.1 percent.

A defensive reputation at a time when most investors are reaching for growth rather than income, concern about interest rates and inflation, heavy indexing to “green” stock indexes that faltered this spring and an unexpectedly severe winter storm that triggered a natural gas price spike.