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Investing Topics: Utility Stocks

Utility Update: Good News For Good Stocks

By Roger S. Conrad on Dec. 23, 2013

Will Santa Claus visit utility stock investors this year? The sector was out of the gate quickly to start the fourth quarter of 2013. But concerns about the “tapering” off of Federal Reserve bond buying quickly slowed things down.

Utilities On Sale

By Roger S. Conrad on Dec. 13, 2013

Will the Federal Reserve really “taper” off its easy money policy? The stock market has already reacted, with dividend-paying stocks leading the selling: The Dow Jones Utility Average is now flat for the fourth quarter, after being up better than 5 percent through mid-November.

Surviving the Taper Trade

By Roger S. Conrad on Dec. 3, 2013

Barring a real financial earthquake, this will be the ninth year of rising interest rates since 1992.

2013 will also be the eighth of those nine that utilities and other dividend paying stocks finished in the black. The only exception was 1994, when deregulation fears upended electricity and communications.

Utilities also rose eight years when rates fell. All their biggest declines, however, were during years of falling interest rates, particularly 2008.

Utility stock prices ultimately reflect the health of underlying companies. Stocks of financially healthy companies with growing dividends always move higher. But when an economic calamity brings interest rates lower quickly, they can drop in a hurry.

Utility Update: AmeriGas Reports, ONEOK Spins

By Roger S. Conrad on Nov. 26, 2013

Shares of transmission line operator ITC Holdings (NYSE: ITC) have dropped more than 14 percent from the all-time highs reached in early November. The immediate catalyst: A group of industrial users have demanded the Federal Energy Regulatory Commission cut its allowed returns.

NRG Reports Q3, Dividend Stocks Strengthen

By Roger S. Conrad on Nov. 18, 2013

Taper talk is heating up again as Federal Reserve Chairman-in-waiting Janet Yellen’s fate is debated on Capitol Hill. Rate hike speculation, however, is having much less impact on essential services stocks than it did this past spring. And one big reason is strong third quarter results.

Utility Update: 11 More Report

By Roger S. Conrad on Nov. 11, 2013

Only three of the 28 current Conrad’s Utility Investor Portfolio recommendations have yet to report calendar third quarter earnings. That’s plenty of data to identify relevant sector trends, while we assess the health of individual companies.

Utility Investing: Slow and Steady Wins the Race

By Roger S. Conrad on Nov. 1, 2013

The $48 billion leveraged buyout of the former TXU Corp by KKR & Co. LP (NYSE: KKR) and other private-equity outfits set record in 2007. Now, the company's impending bankruptcy underscores the risks of looking for a quick buck in the utility sector.

Real Trend Hunting: Watch Earnings

By Roger S. Conrad on Nov. 1, 2013

Real industry trends don’t spontaneously occur. They’re forged on the ground by what companies are actually doing. And you spot them by focusing on individual companies’ results, and aggregating your findings.

So Much For Conventional Wisdom

By Roger S. Conrad on Nov. 1, 2013

It’s been barely two weeks since Washington avoided the first federal government default, at least since the Articles of Confederation were in force. The autumn rally in stocks, however, actually began during the heat of the crisis.

The trigger was long overdue recognition the Federal Reserve isn’t going to abandon loose money until the economy is strong enough to handle it. All the “taper” talk that clogged the airwaves for months proved to be meaningless blather.

That’s hardly the first time conventional wisdom has proven disastrously wrong for the investors who bet on it.

The silver lining is resulting volatility was a solid opportunity to buy good stocks cheap. And thanks to that, we’ve already seen sizeable gains for the Conrad’s Utility Investor Model Portfolios, though they’ve only been around three months.

AT&T Reports, And Other Portents Positive

By Roger S. Conrad on Oct. 28, 2013

AT&T Inc (NYSE: T) was the only Conrad’s Utility Investor Portfolio pick to report numbers last week. Takeaway one is quite positive: The results followed closely those of arch-rival and co-Big Two US communications company Verizon Communications (NYSE: VZ).

MODEL PORTFOLIOS & RATINGS

ABOUT ROGER CONRAD

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b