11-29-2018, 10:52 AM
Love utilities heading into late cycle. Most recent purchases were BKH at 58.45 and BIP at 37.23 a few weeks back. I typically look for a utility trading below its 10yr average P/E, investment grade (BBB+ or better) credit rating, and a Chowder Number of 8 or more.
I also like to have diversified holdings within the space (presently holding AEP, BEP, BIP, BKH, CNP, D, DUK, NGG, PPL, and SO). Utilities, being mostly regional, tend to be susceptible to regional black swan events (like PCG with California fires, and PPL/NGG with Brexit).
I also like to have diversified holdings within the space (presently holding AEP, BEP, BIP, BKH, CNP, D, DUK, NGG, PPL, and SO). Utilities, being mostly regional, tend to be susceptible to regional black swan events (like PCG with California fires, and PPL/NGG with Brexit).