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,
Pollie
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ED is a great company and I looked at it a few months ago. Looks like you already did your research on it.
I have owned Southern Company (SO) in the past and it was a very stable reliable company. But I ended up selling when I needed some cash for my house downpayment last year. I am now looking at it again to see if I want to initiate a position.
I am however more interested in water utilities than electric utilities, so Ive been doing my rounds of analysis for the water utility companies.
Looking forward to see which one you pick
R2R
Hello R2R,
Thanks for your comment.
I did some analysis on water stocks almost a year ago.
There are some great ones.
I’ll look into SO
cheers,
Pollie
Hey Pollie,
My journey with DGI has just been started. As I’m building the core of my portfolio, there are so many great companies to invest in. As a result, I don’t own any Utility companies as of yet. I’d love to buy some, but I don’t see any great deals at the moment, unfortunately.
These are on my watchlist: PYNY, MSEX, AWR & WGL.
Seems like great and steady companies, but they are all trading pretty close to their 52-week high value.
Good luck!
DfS
Thanks for your reaction.
I’ll look into some of these stocks.
Cheers,
Pollie
I not much into utilities myself, but I do own shares of HP (Helmerick and Payne). Although it might not be the type of utility you’re looking for.
Mike
You’re right, it is not the utility i’m interested now.
Allthough HP is a great company.
Thanks for taking the time to write a comment.
Cheers,
Pollie
Yeah, HP is more energy than utility… Keep us updated on your choice! 😉
Mike
Couple names I really like as utilities:
SO, D, PNY, WEC
ED’s dividend growth rate is too low for me but it is a solid company.
Thanks. I’ll look into these stocks.
I appreciate it you took the time to write a comment.
Cheers,
Pollie
I own PNY, AVA and WGL. Maybe one of those will fit your needs.
Thanks I will look into them
Pollie,
A little bit late, but I just traded ED for DUK. The numbers are very similar except that DUK has a higher projected earning growth for the next couple of years which could give it an advantage. Otherwise, my favorite of the electric utilities is SO, but I already have a full position (which is why I added DUK, for diversity).
Good luck,
Keith
Hello Keith,
I do not know DUK. I have to look into it.
Thanks,
Cheers,
Polllie