Investing Topics: Utilities

Fixed-Income Update

By Roger S. Conrad on Feb. 17, 2018

Attractive yields and favorable risk-reward propositions remain in short supply in the fixed-income market. Nevertheless, we continue to leverage our expertise in the utility sector and other essential-service industries to uncover opportunities for fixed-income securities.

Utilities and the Internet of Things

By Roger S. Conrad on Jan. 2, 2018

Access to relatively inexpensive sensor content, data storage, processing power and high-capacity telecom networks has enabled a new era of machine-to-machine communication that can unlock significant efficiencies for industries rooted in the physical world. The rollout of 5G communications networks over the next few years will enhance remote monitoring and other long-distance IOT functionalities.

One Company, Three Powerful Business Lines

By Elliott H. Gue on Dec. 5, 2017

The break-neck volatility of the past few years and the likelihood of shorter cycles in the energy sector argue for diversification into secular growth stories that depend less on commodity prices and timing your entry and exit points.

Politics vs Economics: Wholesale Changes?

By Roger S. Conrad on Nov. 20, 2017

Utilities and regulators in many states have reached a consensus that coal is yesterday’s fuel. Operators will keep these power plants running as long as they remain economic, but NextEra Energy’s decision to close the St. John’s River facility suggests that their time may be short.

Finding Value in an Overbought Market

By Roger S. Conrad on Nov. 9, 2017

The near- to intermediate-term future looks bright for utility stocks and the sector’s prospects for earnings and dividend growth. However, with the Dow Jones Utility Average making new highs, investors must consider how much of this good news the market has priced in to sector favorites.

Macro Income Talk

By Roger S. Conrad on Oct. 11, 2017

What could take utility stocks down a peg? At the end of the day, a rotation out of dividend-paying stocks could pose the biggest risk. These realities mean that active investors should stay disciplined and be nimble; volatility creates pain—and opportunities.

The New Faith in Renewables

By Roger S. Conrad on Aug. 15, 2017

Renewable energy uses to be seen as a threat to the existing utility sector. But now solar investments have filtered into utilities’ regulated service territories. But which part of the renewable market and how those markets are played can make a significant difference in a given company’s outcome.

Catalysts for Growth

By Roger S. Conrad on Jun. 17, 2017

In the first of a two-part series, we examine the potential upside catalysts–above and beyond dividends and their growth–for Lifelong Income Portfolio members. These catalysts offer important near-term potential as we enter the second half of the year.

The Regulatory Shifts Behind Stock Moves

By Roger S. Conrad on Jun. 17, 2017

Around the world and regardless of where they’re based, utilities returns on capital expenditures depend on regulatory decisions. Recent political changes have led to regulatory shifts with significant implications for this sector. Grab your passport, and let’s take a look at these recent changes.