Utilities sector

[fenders53]

(12-27-2020, 08:54 PM)vbin Wrote:

(12-25-2020, 05:09 PM)EricL Wrote: I'm not saying PCG couldn't be a good buy or you can't make money buying or trading it, I'm simply saying it's not what I consider a high quality dividend growth stock. Therefore it's not going to be on a list I put out to followers looking for DGI stocks.

PCG had problems even before the wildfires, as it had a frozen dividend from 2010-2015. So that says to me it wasn't necessarily a one-off event. It now owns a BB- credit rating and operates in a state that is lawsuit happy and with burdensome taxes and regulations.

That doesn't mean it is without value, it just means it's not something I'm interested in messing around with.

Both of you shared similar thoughts and that makes sense. Thank you. Appriciate it. I do have a small position in PCG now. In the past I have had better returns in SO and DUK. That's said PCGU(convertible, pays ~4-5%) is the only utility I hold right now and probably won't add a lot more than I hold.  ( unless We count T as utility too).

T is another subject.  There was a day it may have been a utility sub prior to the sketchy acquisitions.  To me it is now a high yield bond substitute.  Prepare to lose enough capital to wipe out the entire dividend any given year. That's why I play option sale games with it.  Get the annual income over 12% and I can withstand some SP drop risk.