Feature Article
Aqua America Turns on the Gas
By
Roger S. Conrad on
Nov. 11, 2018
Conservative Holding Aqua America Inc (NYSE: WTR) produced a more than 22-fold return over the past quarter century. The simple formula for those gains: Acquiring small water systems unable to meet safe drinking water standards, upgrading them and passing along profits as consistent dividend growth.
Portfolio Strategy: Bedrock for Unsteady Times
By
Roger S. Conrad on
Nov. 11, 2018
Third quarter 2018 results are now in for all but a handful of the 200 plus coverage universe stocks. That also includes all Conrad’s Utility Investor Portfolio companies except Amerigas Partners (NYSE: APU), which reports next week.
I highlight analysis of key numbers and guidance in Utility Report Card. Readers can access either on the website under the “Portfolios” tab, or by simply printing out the accompanying PDF with your issue.
Cutting Dividends to Avoid Capital Markets
By
Roger S. Conrad on
Nov. 11, 2018
Buckeye Partners (NYSE: BPL) has cut its distribution for the first time in its 30-year plus history: A -40.6 percent reduction spot on with our expectation.
The move saves $300 million. That will fund modest capital spending without issuing new equity and make it easier to refinance the hefty $925 million in debt maturing through 2019.
Elections 2018: Utilities Fare Well But With Challenges
By
Roger S. Conrad on
Nov. 11, 2018
Elections have consequences. And few companies are as potentially exposed as providers of essential services like electricity, heat, water and communications.
This year’s voting was no exception. Typically, mid-term elections are ill-attended affairs where the more energized party ambushes the other. This time, however, both Democrats and Republicans came out to play with the highest turnout for a non-presidential election year since 1966.
Another Chance to Buy MDU Resources
By
Roger S. Conrad on
Oct. 9, 2018
Earlier this year, Aggressive Holding MDU Resources (NYSE: MDU) briefly slipped under our buy target: An overblown response to concern about company guidance, coupled with a general selloff in utilities and energy stocks. Unwarranted concerns about interest rates are a likely catalyst for the stock’s slide since early September.
Another Great Entry Point for Avangrid
By
Roger S. Conrad on
Oct. 9, 2018
In March 2015, we added current Conservative Holding Avangrid Inc’s (NYSE: AGR) predecessor company UIL Holdings, as an Aggressive Holding. Our rationale: UIL was a solid New England utility that would capture a big premium from its proposed merger with Iberdrola SA (Spain: IBE, OTC: IBDRY), and an even fatter return afterward.
Portfolio Strategy: Stocks Not Sectors Are The Right Bet In Q4
By
Roger S. Conrad on
Oct. 9, 2018
So far, 2018 has been a good year for the stock market, interest rates and oil prices for the same reason: An already robust US economy that’s been at least temporarily turbo-charged by massive corporate tax cuts.
Dividend Cuts Caused by Mergers Can Raise Returns
By
Roger S. Conrad on
Oct. 9, 2018
Last month, Dominion Energy (NYSE: D) announced it’s buying the 39 percent of Dominion Midstream (NYSE: DM) it doesn’t already own.
In the September 19 Alert, we noted the offer of 0.2468 D shares per partnership unit equates to a roughly 41 percent distribution cut. We also said Dominion will have to increase that closer to the initial public offering price of $21 per unit to succeed.
Utility Disruptors: Turning Peril to Profit
By
Roger S. Conrad on
Oct. 9, 2018
The demise of General Electric (NYSE: GE) is a shocking reminder that even 100-year-old institutions can face crises that threaten their very survival.
In the century and a half since Edison threw the first switch, not one regulated US provider of electricity has ever gone out of business. That’s a remarkable track record for longevity.
But though the services they provide are essential, even water, electric, heating and communications companies haven’t been immune from life-threatening challenges.
New Holding with a Fresh Start
By
Roger S. Conrad on
Sep. 9, 2018
Behind every successful yieldco is a deep-pocketed and motivated sponsor. Now NRG Yield (NYSE: NYLD) has one in privately held Global Infrastructure Partners (GIP).
On August 31, GIP closed its acquisition of NRG Energy’s (NYSE: NRG) ownership interest in the yieldco, changing its name to Clearway Energy Inc. Beginning September 17, 2018, the NYSE symbol for the shares will automatically switch to CWEN. NYLD “A” shares will trade as CWEN.A.
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Top 10 DRIPs
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Endangered Dividends List
Warning: Falling Dividends.
Utility Report Card
Roger's current take and vital statistics on more than 200 essential-services stocks.
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