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.
The proposed $40 billion-plus takeover of TXU Corp by a private-capital consortium may not be the done deal it once appeared. The vast majority of the 10 utility mergers in progress, however, are headed for success. At least a dozen more will likely be announced by the end of the year.
Virginia’s electric utilities are again monopolies. That leaves just 19 deregulated states, and Michigan and Montana are considering breaking ranks as well.
Size and scale have long been secrets to success in the business of providing essential services. Since the advent of mass-distributed electricity, natural gas, communications and water more than a century ago, companies have consistently become more profitable by getting bigger.
The PUHCA repeal, however, has opened the utility sector to a new group of buyers only starting to move in. One of the more aggressive players to emerge is Australia’s Macquarie Bank.
Not everyone is on board yet--or drinking the Kool-Aid, as some call it. The world’s major scientific organizations, however, have now endorsed the concept that human-related carbon emissions are warming the Earth’s overall temperature.
Is energy really still in a bull market? After the action in the last 18 months or so, investors are permitted a healthy dose of skepticism.
When it comes to utilities’ long-term profitability and performance, nothing is as important as regulation. In fact, nothing even comes close.
With top-quality utilities and real estate investment trusts (REITs) paying out 3 percent or even less, it’s certainly become a lot more difficult to earn a decent income return in recent years--particularly if you stick to Wall Street’s beaten path.
Markets work best when the self-interest driving them is enlightened. In other words, there’s a huge difference between decisions made solely to grab a big payday and those based on sound business principles.
We demand two things from management for our money--first, that it’s always up front with us about the prospects for our investment, informing us of risks as well as profit potential. That means clear reporting of earnings, along with where strategies and goals are succeeding and where they’re struggling.