Utility stocks are the ultimate investment for risk-averse investors seeking to create passive income streams via reliable dividends. Utility stocks can be an essential component of your portfolio as they will not only keep your income steady during dangerous economic times, they are usually the first to soar out of recessionary times.
The Utility Stocks archive below includes the latest commentary and analysis on the most important developments affecting the essential services sectors, including water, communications, energy, and other key infrastructure industries. Find out which utility stocks are poised to benefit from ongoing developments in the utility sector and which to avoid.
Be sure to also check out our free report, Dividend Blacklist: 6 Utility Stocks You Should Sell Today to find out if your dividend is in danger.
$1.5 trillion: That’s what The Brattle Group, an economics/finance consultancy, projects the US electric utility will have to spend through 2030 on vital infrastructure. That includes a forecast that the 30 percent growth in power demand currently projected by the US Energy Information Administration can be cut by a third on the basis of aggressive energy efficiency programs.
I’ve never been a fan of top-down stock market analysis. All too often, grand theories cloud investors’ perception of the reality on the ground. And it’s much easier to try to reshape the facts so they fit, rather than question the whole premise.
Opponents of coal use are turning up the heat. This week, protests turned violent against a coal-fired plant being built in North Carolina by a unit of Duke Energy.
Five years ago, there weren’t many kind words for utilities on Wall Street—and for good reason. The Dow Jones Utility Average had dropped nearly 60 percent in barely two years. The highest flyer of the 1990s—Enron—had evaporated in a cloud of scandal, and regulators nationwide were hunting for scapegoats.
The Nuclear Regulatory Commission (NRC) says 20 percent of US nukes need more than basic inspections, a sign of aging. Some plants will face sharply higher cooling costs just to get licenses renewed. And the Nuclear Energy Institute (NEI) forecasts rising costs and long construction times for 31 new US reactors, as companies try to avoid the financial meltdowns of the 1970s building cycle.
Connectivity is one of the great growth stories of the 21st century. The desire to instantaneously communicate and get information anywhere is transcending national borders, cultures and even economic ups and downs.
Bear markets by definition are times of fear and panic. The very fact that stock prices are falling fast is crystal-clear proof that most investors are pulling the plug. Buying—which lifts share prices—is the further thing from the minds of most people. And the more emotional the market becomes, the greater the drop.
A recession-resistant industry dominated by a handful of companies that are growing rapidly and paying huge dividends: This is the investor-friendly state of communications.
“We haven’t seen any impact yet from a recession in the US…oil and gas prices will remain strong and that’s what drives results.” That’s the word from the CEO of Super Oil Total, Christophe de Margerie.
Zero tolerance: That’s how markets are treating any investment perceived as being at risk.