Category Archives: Utility Stocks
Credit Suisse Likes Utility Stocks: Fundamental Look At Top 6 Picks – Seeking Alpha: So far in calendar year 2013, stock markets have been very strong. One very strong sector in particular has been the utility sector. Utilities have long been considered a low risk dividend paying sector. However, because of the regulated nature of most utility stocks, they are also a very low growth sector. Consequently, I feel their attractiveness and investment merit lies more with their dividends than it does for their profit potential.
Investing In Central Utility Stocks – Do Today’s Valuations Make Sense? Part 3 – Seeking Alpha: This is the third in my series on investing in utility stocks based on the sector’s current valuation levels. The series was initially inspired by concerns that utility stocks may be overvalued because they had recently performed very well. When the series first started with Part 1, utility ETFs were showing the best one-year performance of any sector. By the second installment Part 2, the utility sector had fallen into second place (Utility Sector Performance July 31, 2012). Since that time, utilities have fallen into fifth place with year-to-date performance of only 3.8% (see Utility Sector Performance August 3, 2012 below), this could be an indication that utilities are reaching full value.
If You Own Utility Stocks, Consider Selling The Overvalued Ones – Part 1 – Seeking Alpha: Recently, I’ve come across several discussions by dividend growth investors as to whether the utility sector is overvalued or not today. Therefore, I decided to look into the sector’s relative valuation as a whole to see what I could find. The only way to efficiently conduct this kind of research is to rely on a broad statistical array utilizing traditional valuation metrics.