With the bull market in its ninth year and equity valuations at historically elevated levels, investors’ growing preference for passive and quantitative strategies seems risky at a time in the cycle when selectivity is critical to success. Giving up this control for lower fees strikes us as a heavy price to pay.
Although our favorite utilities proved their worth by maintaining or growing their dividends throughout the Great Recession, these stocks weren’t immune to the gut-wrenching volatility that roiled the market. Weathering the inevitable storms is much easier if you took a little profit off the table when valuations reached unsustainably high levels—a practice we’ve advocated throughout the year.
Investors should also remain opportunistic and snap up shares of high-quality companies that temporarily fall out of favor. To this end, we highlight some of our best ideas in the current market.
Don’t forget to check out the Utility Report Card for our in-depth analyses of second-quarter results, as well as updated ratings and Quality Grades.
Kinder Morgan's management team unveiled a plan for the midstream giant to grow its dividend by 60 percent next year. Despite this big talk, the stock remains a show-me story.
We take a look at the handful of Portfolio holdings that reported first-quarter results after the May issue hit the web.
We revisit our basket of fixed-income securities and take profits on one bond that has rallied hard since the presidential election. We also explore the fallout from Westinghouse's bankruptcy.
Utility stocks have continued to rally, propelling a record 20 of our Portfolio holdings above our value-based buy targets--a high-quality problem. We also highlight the solid fourth-quarter results posted by a handful of our aggressive picks.
AT&T and Verizon Communications' second-quarter subscriber additions surprised to the upside, catalyzing a sharp rally in these telecom titans' stock prices. We explain the value of taking a longer view on these names.
Mergers and acquisitions continue apace in the utility sector, but regulators have grown more assertive about ensuring that these deals happen on their terms.
Does Eversource Energy's recently announced acquisition of Aquarion Water mark the start of a new trend in utility mergers and acquisitions?
Over the past 12 months, the difference between the top and bottom performers in the Alerian MLP Infrastructure Index amounted to about 60 percentage points. Capturing this upside requires on-the-ground intelligence, which is why we attend the MLPA Association's annual investor conference every year.
The growing popularity of green bonds creates opportunities for savvy investors and can help utilities to reduce their cost of capital.
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
Harness the tried and true wealth-building power of rising dividends.
Nothing compounds wealth like reinvesting a rising stream of dividends.
Warning: Falling Dividends.
Roger's current take and vital statistics on more than 200 essential-services stocks.