Investing Topics: Aggressive Income

Income-seeking investors shouldn't hesitate to take profits on stocks that run-up beyond their fair value.

Sell Windstream Holdings for a more than 50 percent gain.

Breitburn Energy Partners LP's recently proposed acquisition of QR Energy LP demonstrates that the search for scale is alive and well among upstream MLPs, as private-equity buyers ratchet up the competition for asset acquisitions.

Thanks to the rapid development of renewable energy and the support of state regulators, this utility has moved to break its addiction to imported oil, setting the stage for higher profits over the long term and lower bills for consumers.

Our best power play in Asia owns and operates high-quality electric power assets in Southern China and India--two markets with the best prospects for demand growth--and its empire is poised to keep overall earnings and dividends growing.

Rising dividends are the essential fuel for higher stock prices. And nothing is more critical for payout growth than healthy, expanding businesses.

Not one of the hundreds of regulated utility mergers over the past century has failed to create a stronger, healthier company. Despite skepticism in some quarters, Exelon Corp’s (NYSE: EXC) $6.8 billion purchase of Pepco Holdings (NYSE: POM) is also set for success.

Every portfolio has winners and losers. The key is knowing when to let the best performers run, and cut the worst loose.

Conrad's Utility Investor has three actively managed portfolios--Aggressive Income, Conservative Income and Top 10 Drips--each of which is tailored to a specific investment style and risk tolerance. We review each model portfolio's objective, book a 60 percent gain on one of our winners and shift one of our Conservative Income Portfolio holdings to the Aggressive Income Portfolio.

No US utility is better positioned to profit from America’s energy boom than Entergy Corp (NYSE: ETR). The company’s six electric utility units own and operate 22 gigawatts of power plants in Arkansas, Louisiana, Mississippi and Texas.