Investing Topics: Conservative Income

Investors are dumping dividend-paying stocks of strong companies due to misplaced fears about interest rate sensitivity. That’s opening up new opportunities in our favorite stocks, but be patient with prices.

Southern Company (NYSE: SO) currently sits near a new 52-week low. The reason: A combination of investor worries about rising interest rates and concern about its substantial capital spending program.

There weren't any big surprises in our Focus List earnings reports this quarter, which is the way we like it. But there are a lot of bargains in all three portfolios that you can move into now. The story of essential service stocks is just beginning.

Hydroelectric power is the world’s cleanest and cheapest source of baseload power. And with 5,900 megawatts of installed capacity and a full pipeline of new projects, Brookfield Renewable Energy Partners (TSX: BEP-U, NYSE: BEP) is the world’s premier pure play.

Discipline, consistency and hard work don’t always guarantee success. But they're the necessary foundation of every winning investment strategy.

Utilities and essential services stocks are known for their long-run stability—both all-weather business strength and low share price volatility. But even they pale before the unmatched reliability of utility bonds.