Investing Topics: Utility Stocks

NextEra Energy: Best in Class, But at a Price

By Roger S. Conrad on Jan. 30, 2019

NextEra Energy has a very attractive long-term growth profile. But it’s quite vulnerable to a selloff if the sky-high expectations baked into the share price are punctured. One good alternative is its NextEra Energy Partners (NYSE: NEP) unit. The dividend is two percentage points higher with an identical PG&E bankruptcy-proof long-term growth rate.

A Changing of the Guard in Midstream MLPs

By Roger S. Conrad on Dec. 18, 2017

We understand investors’ pessimism toward MLPs. Including distributions, the Alerian MLP Index has performed poorly this year. Although sentiment toward midstream MLPs remains weak, the doom and gloom gives savvy investors an opportunity to lock in above-average yields on high-quality names that stand to benefit as US onshore oil and gas production takes market share over time.

EEI Conference Preview: Electricity Markets and the War for Coal

By Roger S. Conrad on Oct. 18, 2017

The Trump administration has clearly gone all-in on turning the supposed war on coal into a war for coal, but the outcome will depend on electric utilities and power companies. We'll focus on the risks and opportunities associated with government intervention when we attend the Edison Electric Institute's financial conference in November.

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 Rise of the Machines

By Roger S. Conrad on Sep. 27, 2017

Best-in-class telecom providers appear to be on the verge of an underappreciated growth phase, spurred by the rise of machine-to-machine communications and the internet of things.

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.

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.

The Search for Yield

By Roger S. Conrad on May. 12, 2017

Where can investors find big yields that won’t blow up in their faces?

Green Bonds And Utilities

By Roger S. Conrad on Apr. 24, 2017

The growing popularity of green bonds creates opportunities for savvy investors and can help utilities to reduce their cost of capital.

Utilities Bob as Macro Conditions Change

By Roger S. Conrad on Mar. 21, 2017

The Dow Jones Utility Average has returned more than 10 percent since early December 2016, outperforming the S&P 500 by a few percentage points. It’s now reached valuations where the risk-reward balance skews to the downside. In this environment, investors should evaluate the macro forces that could bat these stocks about in coming months.