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Feature Article

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.

High Quality Midstream and Cheap Again

By Roger S. Conrad on Sep. 9, 2018
Conservative Holding Pembina Pipeline Corp (TSX: PPL, NYSE: PBA) is underwater -5.6 percent this year. That compares to a 7.4 percent return for the Alerian MLP Infrastructure Index.

Portfolio Strategy: Time for High Grading

By Roger S. Conrad on Sep. 9, 2018
It’s hard not to be cheered by this week’s strong news on US employment. Unfortunately, it takes a lot of strong portents to keep up with lofty investor expectations in year 10 of this historic bull market. And there’s no shortage of potential pitfalls to trigger reversals.

Dividend Cuts: Good News and Bad news

By Roger S. Conrad on Sep. 9, 2018
First the good news: Four companies earned an exit from the Endangered Dividends List this month without cutting payouts. CenturyLink (NYSE: CTL) is off after a stock and bond rally following turnaround second quarter results. That eases cost of capital pressures on the dividend and merits a boost in our buy target.

Profits and Perils from Emerging Market Meltdowns

By Roger S. Conrad on Sep. 9, 2018
Some 20 years ago, the US stock market and economy were poised on a knife’s edge. The emerging market storm that started with the 1997 fiscal meltdown in Thailand had at last reached these shores. The S&P 500 had already tumbled by more than 15 percent from its summer highs, and would go on to drop another 10 percent before touching bottom on October 8. Only dramatic action by then Federal Reserve Chairman Alan Greenspan and other central bankers stemmed the tide that in the end actually landed a major country in bankruptcy, Russia.

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ABOUT ROGER CONRAD

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b