Join Roger Conrad At Conrad’s Utility Investor
Ranked #1 By Hulbert’s Financial Digest
Did you know that 394 US companies cut dividends in 2015? That’s almost 100 more than in 2008, at the height of the Financial Crisis.
Worse, if current trends hold, 2016’s dividend cuts will top 2009’s all-time record of 527, and by at least as wide of a margin.
You don’t have to look far to find reasons why: collapsing commodity prices, much softer-than-expected global economic growth, the Federal Reserve’s stubborn insistence on fighting non-existent inflation and even falling stock prices all pose grave threats to profits this year.
Then there’s the hammer blow almost no one saw coming: The credit market implosion that started with bankrupt energy producers and has spread to even best-in-class companies in almost every sector.
Several large bond market investors are already down for the count. And as a result, even investment grade US companies face dramatically higher borrowing costs, just as hundreds of billions of dollars of their bonds and credit lines must be either refinanced or paid off in full.
Higher interest costs alone will pound profits enough this year to trigger cuts in places where investors least expect them. And the result will be far more devastating declines in stocks than we’ve seen so far, including companies that investors have considered their safeties.
The seeds of the greatest danger to dividends in 2016 were sown during the boom long before this downturn began—when companies tried to feed investors’ insatiable demand for high yields with dividends they could not sustain.
Many investors have already learned the hard lesson that the business cycle has not been repealed—and that no dividend is to be trusted unless the underlying company paying it is solid.
Have I scared you yet? I sure hope so. Because to paraphrase my favorite Founding Father—the inventor Ben Franklin—when it comes to dividend cuts, an ounce of prevention can be worth at least several tons of cure.
And prevention is very simple:
Give your portfolio a real going over and get rid of the junk. Then use the proceeds to add some high quality stocks from the one sector that’s sure to weather all of these challenges—and has already outperformed the broad stock market by 17 percentage points this year.
I’m talking about utilities and essential service stocks. And every month, my advisory Conrad’s Utility Investor tracks the 214 best from around the world—and in between with subscribers-only action alerts, updates, online chats and occasional webinars.
My five-point Quality Grade ratings system distills that coverage universe down to concise, best-in-class portfolios, which have consistently been rated at the top of the industry by the Hulbert Financial Digest—the truth teller for decades when it comes to investment advisors.
Each month, I deliver my two top picks, suitable for experienced hands with established portfolios, as well as those just getting started with their savings. And I eat my own cooking: Those dividend reinvestment plans I’ve been building the past three decades are really coming in handy with college age kids.
Here are 7 reasons why you need utility stocks in your portfolio now…
1 The dividends are safe: Not one US utility cut its dividend in 2015. There are a couple on my Endangered Dividends List, my “early warning” system based on my Quality Grade system. But this sector is indeed a safe haven, just as it was throughout the Financial Crisis and Great Recession of 2007-09.
2The dividends are generous. The average yield in my Conservative Portfolio is nearly 6 percent, with no real dividend risk. And some pay as much as 10 percent, despite years of increases.
3Utility dividends always grow, even when the economy is weak. That’s because what these companies provide is absolutely essential for modern life, from electricity and heat to water and communications.
4Utility stocks are the market’s top-performing sector so far in 2016. And they’re set to be the rest of the year as well.
5My current issue of Conrad’s Utility Investor highlights all of these selling points, and what you need to know to take advantage of them.
6The best utilities are growing faster than ever by investing in their areas of expertise. And thanks to a cost of capital better than most governments, they’re expanding, even as would-be rivals perish. That means more dividend growth ahead..
7To be sure, corporate America and dividend paying stocks in particular are facing a massive stress test. And like anyone else with a long career in an industry, I haven’t always gotten it right.
In addition to updating our top portfolio picks, Roger Conrad just released 5 comprehensive reports on his top plays for utility stocks to subscribers… Here is a quick summary of our available reports:
Subscribe now and get Roger Conrad’s 5 brand new comprehensive reports with his top plays for utility stocks…
1Buckle Up For Outperformance: 5 Big Yield Utility Stocks With A Growth Kicker
Report Summary: With the US and global economies softening and credit markets tightening, a company’s relative cost of capital can determine whether it’s a winner or a loser.
2Buy, Hold, Profit: Three Forever Stocks to Grow Your Nest Egg
Report Summary: Your broker may want you to trade in and out of stocks regularly—that’s how they make their money. But there’s something to be said for buying into high-quality names, sitting back and watching the dividends roll in. Participating in a dividend reinvestment plan can be even more lucrative over the long haul. Here are three names with staying power, the bedrock on which you can build your portfolio.
3Three Must-Own Dividend Stocks to Buy in a Bear Market
Report Summary: Believe it or not, I find myself looking forward to bear markets. Shares of utilities and other companies that provide essential services usually hold up better than cyclical stocks because of their steady revenue and outsized dividends. But even our favorites will pull back when the market sells off indiscriminately. Here are three stocks you shouldn’t hesitate to add to your portfolio in a bear market.
4Renewable Energy: How Investors Can Make Green and Avoid Red
Report Summary: Utilities have emerged as an important source of funding and development for the renewable-energy boom. This Special Report covers everything from the politics of renewable energy to the best investment opportunities and the sure-fire losers that are big on hype and devoid of profits.
5Top 3 Utility Takeover Plays
Report Summary: The utility sector has been a hotbed of merger and acquisition activity over the past 12 months, with several major electricity producers acquiring gas distribution businesses in blockbuster deals. Conrad’s Utility Investor readers reaped windfall profits on Piedmont Natural Gas (NYSE: PNY) and Hawaiian Electric Industries (NYSE: HE), both of which received handsome takeover offers. Deal flow in the utility sector will remain robust in 2016. Here are five of our top takeover plays, all of which we wouldn’t mind owning even if they remain independent.
I’m not asking for you to make a long-term commitment today… All I’m asking is that you give Conrad’s Utility Investor a fair try…
Sign up for a risk-free trial subscription to Conrad’s Utility Investor today, download all of our premium reports, read our latest issues and THEN DECIDE.
If you’re not convinced Conrad’s Utility Investor is for you, for ANY reason,cancel in the first 30 days and receive a full 100% refund with no questions asked and no hard feelings… I guarantee it.
I hope you’ll consider this offer seriously. I know in my heart it will be one of the best financial moves you ever make… To join us, simply click the button below, which will take you to a secure order form. You’ll have access to all of the research and information covered in this letter in a matter of just minutes.
Our 30-Day Guarantee
If you’re not convinced Conrad’s Utility Investor is for you, for ANY reason, cancel in the first 30 days and receive a full 100% refund with no questions asked and no hard feelings. I guarantee it. I hope you’ll consider this offer seriously, and that it will be one of the best financial moves you ever make. To join, simply click the button below, which will take you to a secure order form. You’ll have access to all of the research and information covered in this letter in a matter of just minutes.