Economics not politics are what ultimately drive investor returns. And as this month’s Utility Report Card comments show, Q3 results and guidance are quite strong for the vast majority of the nearly 200 essential services companies we track.
The utilities sector also continues to get a lift from M&A. Since the October feature article went to post, two all-cash deals have been announced. One of them involves Conservative focus stock Avangrid Inc (NYSE: AGR). The other is the nearly 60 percent premium offer for one of last month’s picks Alaska Communications (NSDQ: ALSK).
Now more than ever, it’s a seller’s market for bonds of regulated electric, gas and water utilities. But our list of Fixed income picks features four bonds that trade below our recommended buy prices and meet my cardinal rule for buying any bond or preferred stock.
The first three Portfolio electric utilities have announced Q3 results and delivered guidance, and the common thread for all three companies is they ignited robust underlying earnings growth by deploying new renewable energy generating capacity, despite pandemic-related pressures
Chronic share underperformance, weak Q2 operating results and still-heavy debt raise the question - is it time to sell AT&T (NYSE: T)?
If you own shares of Conservative Holding Brookfield Renewable Partners (TSX: BEP-U, NYSE: BEP), you’ll soon notice they currently trade in the low 40s, versus a low 50s price just a few days ago. Don’t despair. The price change is the result of a uniquely structured 5-to-4 stock split. The overall value of your Brookfield position has not changed.
Elections have consequences, especially for highly regulated industries like electric utilities. And a prospective Biden Administration could actually get most of the way to its energy goals because utilities are already quickly moving in this direction.
What’s a well-run fiber broadband network worth these days?
From all indications, 2020 has been the worst wildfire season in California’s history. And the state is hardly alone in its misery, as an unprecedented combination of wind gusts and dry conditions have also inflicted record damages throughout the West and Rocky Mountain states.
The top two companies that dominate this essential service industry have combined market capitalization of $440 billion and annual revenue of $300 billion plus, but still trade for an average of just 10 times expected 2020 earnings. They clearly suffer from the burden of low expectations.
Elections always have consequences. They’re just rarely what investors think they will be—and almost never what’s declared beforehand in popular investment media.
Not even rock-solid business resilience to Covid-19 fallout has been enough to swing US electric utilities from laggards to leaders this year. But another wave of mergers and acquisitions just might do the trick.
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.