In January I wrote a blog post about the sector allocation of my Vrijheid Fonds (here).
As you can read, I like the consumer staples, consumer discretionary and Energy sectors. At this moment more than 60% of my Vrijheid Fonds is in these sectors. I think this is not a problem. I have some great companies in these sectors, which are the corner stones of my Vrijheid Fonds.
In my search for companies with high yield (> 3%) I found myself looking at the Utility sector. This is also a sector that is not present in my Vrijheid Fonds. I think it is a sector worth having in my Vrijheid Fonds. I realize that their dividend growth rate are (very) low. And this I do not like. But they are normally really stable companies with a great yield. The YOC will not grow very hard over the years. That is the downside. However I believe that this kind of stocks in a portfolio are necessary in rough times (low beta). Of course the exposure in this sector should not be too high.
I already did my research on Consolidated Edison (ED) (here).
ED is a great stock with a high yield and a low beta. But if you look at the dividend aristocrat list, you can see around 15 companies in the Utility sector. As you readers know (and if not read the about me section of my blog), I do not live in The States. So a lot of these companies I do not know. And I do not have the time to analyze all these companies.
Therefore I can use some help from you my dear reader. Which Utility stock do you have and do you think is worth looking into?
I like to hear from you!
Thanks and cheers,