Investing Topics: Income Insights

Big Tech and Electric Utilities Go a Courtin’

By Roger S. Conrad on Dec. 1, 2016

What does the utility sector’s budding relationship with big tech mean for investors?

Election 2016: What’s at Stake for Utility Stocks?

By Roger S. Conrad on Oct. 24, 2016

The upcoming gubernatorial elections could have important implications for utilities in these states.

The More Things Change, the More Some Utilities Profit

By Roger S. Conrad on Oct. 14, 2016

Critics who dismiss utilities as dinosaurs doomed for extinction aren’t paying attention to the forward-looking moves made by Edison International and some of its peers.

Forget the Federal Reserve: Focus on Fundamentals

By Roger S. Conrad on Sep. 29, 2016

While the market fixates on whether the Federal Reserve will hike rates, too many income-seeking investors ignore the danger lurking in their portfolios.

Utility Takeover Talk

By Roger S. Conrad on Sep. 21, 2016

It's been an active year for mergers and acquisitions in the utility sector. We discuss our key takeaways from a major deal that closed ahead of schedule and highlight some of the main themes that will be in play going forward.

Utility M&A Update

By Roger S. Conrad on Sep. 8, 2016

Consolidation continues apace in the utility sector, as operators seek to take advantage of frothy stock prices to improve their economies of scale and increase their exposure to growing demand for natural gas. We update our takes on the various pending acquisitions involving the more than 200 essential-services stocks that we cover in our Utility Report Card.

Utilities Sell Equity at the Right Time and for the Right Reasons

By Roger S. Conrad on Aug. 26, 2016

The recent spate of equity issuance is yet another sign of frothy valuations in the utility sector, but these moves set the stage for future growth. Investors should bide their time and wait for a pullback to buy our favorite utility stocks.

AT&T and Verizon Communications Extend Their Reach

By Roger S. Conrad on Aug. 10, 2016

Some analysts have criticized recent acquisitions by AT&T and Verizon Communications as signs of weakness. We take a different view.

Barron’s Bashes Utility Stocks for All the Wrong Reasons

By Roger S. Conrad on Aug. 2, 2016

Last month, Barron's published a sensationalist article warning of a looming death spiral for US electric utilities and traditional power generators. Although stretched valuations may mean that utility stocks are overdue for a pullback in the near term, the sector's future prospects remain undiminished.

Utility Stocks and Politics

By Roger S. Conrad on Jun. 20, 2016

The upcoming election season is heating up, but overheated valuations are a bigger concern for investors in utility stocks. With a highly contentious presidential race likely to stoke strong emotions, investors should keep a level head and focus on what can actually change with election results. Above all, remember to bet on probabilities, not your personal politics.