Years from now, market historians may look back on 2020 as a relatively quiet year for utility stocks—with the Dow Jones Utility Average posting a 1.5 percent return including dividends.
Even a cursory glance at my graph reveals anything but a tranquil time. In retrospect, best in class essential services companies demonstrated resilience to the historic pandemic that exceeded even my high expectations. But even the strongest tested our patience and nerves as stocks.
My hat’s off to readers who followed the partial profit taking advice in last years Valentine’s Day Alert “Utilities’ New Highs: What to Do Now.” And that goes double for those who bought back in at the Dream Buy prices per the Alerts of March 13 and 17.
Neither was an easy move for investors to make, or for me to advise. The good news is 2021 should be a much better for simply buying and holding, as the pandemic subsides and the US economy recovers.
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Roger's current take and vital statistics on more than 200 essential-services stocks.